5 Common Tax Mistakes to Avoid in Greece, NY: Professional Advice to Save You Money

Tax season can be stressful, and for many small business owners and individuals in Greece, NY, it's easy to make mistakes that can lead to costly consequences. Whether it’s overlooking deductions, miscalculating income, or failing to file correctly, mistakes can cost you more than just time—they can result in penalties, interest, and missed opportunities to save.

At Nacca & Capizzi, we’ve seen it all. In this article, we’ll walk you through five common tax mistakes that people in Greece, NY often make and offer expert advice on how to avoid them. By being aware of these pitfalls and preparing ahead of time, you can save money and reduce the risk of errors.

1. Failing to Keep Accurate Records

The Importance of Organized Record-Keeping

One of the biggest mistakes small business owners and individuals make is failing to keep accurate records of their income and expenses. Without proper documentation, it’s impossible to claim deductions, substantiate your income, or accurately file your tax returns. The IRS requires clear records to back up any claims you make, and missing documentation can result in missed deductions or even an audit.

How to Avoid This Mistake:

• Track Your Expenses: Whether you use accounting software like QuickBooks or a simple spreadsheet, make sure to track all business and personal expenses related to your taxes.
• Keep Receipts: Store receipts for purchases, travel, meals, and any other business-related expenses.
• Maintain Digital Copies: Scan and store digital copies of important receipts and documents to avoid losing them over time.

If you’re unsure how to organize your records or what documentation to keep, contact Nacca & Capizzi for assistance.

2. Overlooking Deductions and Tax Credits

Missed Deductions Can Mean Higher Taxes

Many taxpayers, particularly small business owners in Greece, NY, overlook valuable deductions and tax credits they could be eligible for. The IRS allows you to deduct many business expenses, such as office supplies, business travel, and even home office costs. Missing out on these deductions can significantly increase your tax liability.

Common Deductions to Remember:

• Business Expenses: Office supplies, marketing costs, and travel expenses.
• Home Office Deduction: If you work from home, a portion of your home-related expenses may be deductible.
• Medical Expenses: If you incur significant medical costs, they may be deductible if they exceed a certain percentage of your income.

How to Avoid This Mistake:

Work with a CPA to ensure you’re claiming all eligible deductions and credits. Get in touch with Nacca & Capizzi for personalized advice on which deductions you may be overlooking.

3. Miscalculating Estimated Taxes

Self-Employed? Don’t Forget Quarterly Payments

If you’re self-employed or have additional income not subject to automatic withholding, it’s crucial to make quarterly estimated tax payments. Many people mistakenly wait until the end of the year to file their taxes, which can lead to underpayment penalties and interest. In Greece, NY, businesses that fail to make timely estimated payments may face a hefty tax bill when they file, along with penalties for not paying enough throughout the year.

How to Avoid This Mistake:

• Calculate Quarterly Taxes: Use your income from previous years or projections to estimate your quarterly tax payments.
• Pay on Time: Be sure to make payments by the IRS deadlines (April 15, June 15, September 15, and January 15) to avoid penalties.

At Nacca & Capizzi, we can help you determine the correct amount of estimated taxes and keep track of deadlines, so you never miss a payment.

Contact us today to set up a payment plan and avoid penalties.

4. Not Taking Advantage of Retirement Contributions

Lower Your Taxable Income and Save for the Future

One of the best ways to save money on taxes is to contribute to retirement accounts, such as a 401(k) or IRA. Many small business owners and individuals in Greece, NY, miss out on this opportunity to lower their taxable income. Contributions to these accounts are tax-deductible, meaning they reduce your taxable income for the year, which can result in significant tax savings.

How to Avoid This Mistake:

• Contribute to an IRA: Whether it's a Traditional IRA or Roth IRA, contributing can help you save for retirement while lowering your tax bill.
• Contribute to Employer-Sponsored Plans: If your employer offers a 401(k) plan, take advantage of the tax benefits by contributing as much as possible.
• Catch-Up Contributions: If you’re over the age of 50, make sure you’re taking advantage of catch-up contributions, which allow you to contribute more to retirement accounts.

Let Nacca & Capizzi help you maximize your retirement contributions and ensure you're making the most of tax-saving opportunities.

5. Missing Filing Deadlines

Avoid Late Fees and Penalties

Missing filing deadlines is a common mistake, especially when you’re juggling other responsibilities. Late filings can result in penalties, interest charges, and an increased risk of audits. In Greece, NY, small businesses and individuals should always file on time to avoid these costly consequences.

How to Avoid This Mistake:

• Set Calendar Reminders: Make a note of key tax deadlines (e.g., April 15 for individual returns) and set reminders well in advance.
• File an Extension: If you need more time, file for an extension, but be sure to pay any taxes owed by the original deadline to avoid interest.

By staying on top of deadlines, you can avoid stress and penalties.

Contact Nacca & Capizzi to ensure your taxes are filed on time and avoid costly penalties.

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Final Thoughts

Avoiding these common tax mistakes can save you a significant amount of money and reduce the stress of tax season. At Nacca & Capizzi, we help businesses and individuals in Greece, NY, navigate the complexities of tax filing and ensure you’re taking full advantage of available deductions, credits, and tax-saving strategies. With our expert guidance, you can feel confident knowing that your taxes are in good hands.

Don't wait until the last minute—contact Nacca & Capizzi today to schedule a consultation and ensure you're prepared for tax season!