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Common tax mistakes to avoid in 2018
Life changes — getting married, having a baby, buying or selling a home, sending a child off to college or retiring — often come with changes to your tax situation. Overlooking these changes when filing your taxes can lead taxpayers to make mistakes that leave money on the table, potentially impacting their refund at a time when the average refund is about $2,800. Here is a list of common tax mistakes to avoid in the 2018 filing season to help ensure you don’t miss any deductions or credits that you deserve.
Using an incorrect filing status. One of the most common mistakes taxpayers make is selecting the wrong filing status. A taxpayer’s filing status can affect which credits and deductions they’re eligible for, the value of their standard deduction and their tax bracket. Common clerical errors such as mixing up names, forgetting to include information reported on your W-2, 1099 or other forms, or even making mathematical errors can also affect your tax benefits.
Overlooking credits and deductions. Most taxpayers file their taxes using the standard deduction, but you may be eligible for a variety of itemized deductions that could possibly save you more. Also, you may be eligible for “above-the-line” deductions and tax credits, none of which require you to itemize. And it’s important to note that the newly passed tax reform generally does not impact these credits or deductions until you file your 2018 tax return in 2019.
Not filing. On average, the IRS announces annually that approximately $1 billion goes unclaimed in federal tax refunds. Taxpayers can claim a refund for up to three years after the filing deadline. So, in addition to filing your 2017 return, keep in mind to file your 2015 return by April 17, 2018. If not, you will lose your 2015 refund. There is no late-filing penalty if a taxpayer is due a refund. Also, even if you are not required to file a return, you may be entitled to a refund.
— Brandpoint
NUMBER TO KNOW
$1.023 trillion: According to the Federal Reserve, American’s outstanding credit card debt reached a record high $1.023 trillion in November.
TECH TALK
GoPro quits drones, slashes staff
GoPro, the mobile camera company, recently announced it will stop producing drones (with and without a camera) and will trim its staff to fewer than 1,000 due to the regulatory environment in the U.S. and Europe. The declining sales and slashing of staff for GoPro could also be a sign of the company being sold. GoPro officials said the company will exit the drone business once it sells off its remaining inventory.
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