10 Most Common Tax Mistakes

According to the IRS over 17% of all returns prepared by hand have errors on them. Avoid making these common mistakes by using TaxNet™ to prepare your tax return this year.

TaxQue can help you avoid these mistakes...

Making Math Errors One of the most common mistakes on a tax return is bad math. Mistakes in arithmetic or in transferring figures from one form to another will get you an immediate correction notice. Math errors also can reduce your tax refund or result in you owing more tax than you really do. TaxQue tax preparer eliminate these potential errors.

Omitting Social Security Numbers Your social security number is used by the IRS as an identification number. There are so many transactions -- income statements, savings account interest, retirement plan contributions - that are referenced with this number. TaxQue preparation professionals eliminate this common mistake bye double checking your social security number and making sure that it is included in the appropriate place on each form.

Not Signing and Dating your Return Believe it or not, it is very common for taxpayers to forget to sign and date their return. Form 1040 is not considered a valid tax return unless you sign it. TaxQue´s unique protocol virtually eliminates the most common errors with professional state-of-the-art software that prompts all necessary preparation items.

Missing Interest and Dividends The IRS knows the interest you made and the dividends that were paid to you because your Social Security number is on your bank and investment accounts. If you forget to include this income on your return, the IRS examiners will let you know that you owe taxes on it.

Forgetting Charitable Contributions Taxpayers forget that all types of donations - cash, clothing, household items and even cars - can be valuable tax deductions. Different types of contributions have different IRS reporting requirements, TaxQue will help walk you though your charitable contributions to ensure that you include them in your return.

Using the wrong Investment Basis Calculating capital gains on stocks and mutual funds involves several complicated steps, but one critical step is to properly figure what your stocks cost you -- their basis -- before you sold them. If your investment paid dividends or capital gains distributions that you reinvested in the stock or fund, you paid tax on them in the year they were earned. These amounts should be added to your cost basis to ensure that you don´t double pay Uncle Sam tax money when you sell them.

Using the EZ Form It is common for taxpayers to prepare and file a 1040EZ just because it´s so much faster to fill out. Many taxpayers have the potential of getting a bigger refund if they use the 1040 Long form. TaxQue makes sure to use the form that gets you the biggest refund while making sure you are in compliance with IRS regulations.

Not Bunching Deductions Many deductions - such as medical costs, miscellaneous expenses -- are allowed only if you reach a certain amount. So you might want to shift, or bunch, some of those costs into one tax year to take advantage. This can be as simple as paying professional magazine subscriptions before year end or opting to pay for an elective medical procedure in a tax year when you´re near the deductibility requirements.

Missing Tax Credits Tax credits can save you a lot of money. There are many tax credits available, including ones for education costs, child and dependent care expenses and the earned income credit that could totally erase a tax bill and even give lower-salaried taxpayers a refund. TaxQue checks for available credits and makes sure that you get the all the tax credits you deserve.

Using the Wrong Tax Rate Tax tables are a little confusing and it is common for taxpayers to misread these tables and use the wrong tax rate to calculate tax liabilities. This is even more common if you receive dividend income or sell stocks or bonds. When TaxQue prepares your return, you are guaranteed that the right tax rate is used.

Top 50 Most Overlooked Tax Deductions

Below is a list of the most common overlooked tax deductions items. Not every item will apply to your individual situation. If you have any questions or need further assistance, contact your local TaxQue tax office. 1. Interest on student loans

2. 50% of paid self-employment tax

3. Health insurance premium adjustment on Form 1040 for some self-employed persons

4. Early withdrawal of savings penalties

5. Spousal maintenance paid (not including child support)

6. Medical transportation - including tolls, parking, and the standard mileage deduction of 15 cents per mile for visiting doctors and dentists and picking up medicine

7. Nursing home/assisted living expenses that are primarily for medical care

8. Equipment such as crutches, canes, and orthopedic shoes that are considered medical aids

9. Eye glasses, contact lenses and hearing aids

10. Hospital/Medical fees for services such as nursing, physical therapy, lab tests, and x-rays

11. Equipment for disabled, handicapped or special needs individuals

12. A portion life-care fees paid to retirement home designated for medical care

13. Expenses for alcohol, drug abuse, and certain stop-smoking treatments

14. Special education costs for mentally or physically handicapped individuals

15. Wages for nursing services

16. State income taxes owed from a prior year and paid in the current tax year

17. Last quarter´s estimated state and local taxes if paid by December 31

18. Personal property taxes on cars, boats, etc.

19. Taxes paid to a foreign government

20. Mandatory contributions to state disability funds

21. Points paid on mortgage or refinancing loans

22. Property donated to a recognized charity

23. Cash contributions to a recognized charity

24. Mileage incurred in relation to charitable activities at 14 cents per mile

25. Casualty and theft losses in excess of $100 and totaling more than 10% of adjusted gross income

26. Education expenses paid to maintain or improve job skills

27. A handicapped individual´s work-related expenses

28. Professional journals, magazines, and newspapers that are job-related

29. Cost of safe deposit box used for investments or business

30. Seeing eye dog or guard dog for business

31. Required uniforms and work clothes not suitable for streetwear

32. Union dues

33. Employment agency fees or commissions

34. Home office expenses, if primary place of business

35. Job-seeking expenses within present field of employment

36. New business start-up costs

37. Dues to professional organizations

38. Business gifts up to $25 per customer or client

39. Employment-related moving expenses

40. Business expenses including travel, meals, lodging, and entertainment not reimbursed by your employer

41. Cleaning and laundering services while traveling for business

42. Tools bought for use at your job

43. Cellular phones required for business

44. Worthless stock or securities

45. Commission to brokers or agents for sale of property or property management

46. Fees for tax preparation or advice

47. Legal fees to collect taxable alimony

48. Support of a non-dependent student living with you

49. Services of a housekeeper, maid, or cook needed to run your home for the benefit of a qualifying dependent while you work

50. Gambling losses to the extent of winnings