It’s tax season, and I’m double-checking my return before filing. I’m checking for seven typical mistakes. I began mentioning MSN’s seven tax mistakes earlier, and now I’ll finish up those thoughts.
4. Getting married. According to MSN, a “marriage penalty” still exists. “[T]wo individuals who each earn $70,000 in taxable income [and file as a couple] would be required to pay $28,931.50 in taxes — $601.50 more than what they would have paid had they remained single.”
5. Losing track of receipts. Generally, receipts should be kept for three years. After that time, the IRS can’t question your deductions (according to MSN). Most of my purchases affecting my 1099 income were purchase donline, so I can fairly easily pull up receipts if necessary.
6. Failing to bunch deductions. In order to claim deductions, they have to add up to more than a certain percentage of your income. You can prepay for some expenses, such as medical expenses, in order to reach that threshhold in one year.
7. Forgetting to donate unwanted items to charity before Dec. 31. You’ll need a receipt in order to get the deduction, but the receipt details can be hand-written, but a date is necessary.
Published or updated February 15, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.