A business owner or an individual taxpayer in Long Island who is filing taxes for the first time must be under a lot of stress, which is totally understandable because tax filing can be quite a stressful task. Most people and business owners choose a CPA in St. James, Long Island, to take care of taxes. Now, let us have a look at some common mistakes to be avoided to make sure the whole filing process goes smoothly.
- Missing the filing deadline
One of the most common and repeated mistakes is missing the filing deadline. The IRS generally keeps the deadline somewhere around the 15th of April every financial year. Many people fail to file taxes before the deadline, which leads to penalties and interest on due taxes, which can be costly and could have been easily avoided. If someone is unable to file taxes by the deadline, such people can request an extension through Form 4868, which gives them another six months to file returns. But do keep in mind that it merely provides an extension on the filing date, not the payment due date.
- Incorrect or missing information
People often make errors while filling out basic information such as address, security number, and bank account details, which delays the return processing. Everyone must check all the filled details at least twice before filing taxes to make sure all details are accurate, which will prevent any unnecessary delays and complications in the process. Income reported on numerous forms must match the amount entered on the tax returns because any inconsistencies lead to audits and further delays.
- Overlooking income sources
Incomes from all sources are meant to be reported rather than only the earnings from the primary job. Other income sources include freelancing, rental income, investments, and so on. There are numerous forms available to report each type of income, such as 1099-INT for interest income and 1099-NEC for freelance.
- Not claiming all eligible credits and deductions.
There are numerous credits and deductions available for taxpayers in New York State based on various eligibility criteria. A good number of people who are filing taxes for the first time are either unaware of such credits and deductions or fail to avail the benefits, which could have potentially minimized the tax burden.
Seek professional help when needed!
Tax laws can be complex, and for those who are filing for the first time, it can be pretty overwhelming. That is why it is often suggested that people must seek professional help from a qualified CPA, who not only helps with the taxes but also provides optimal management, which offers other significant benefits to individual taxpayers or business owners.
