Tags: IRA | tax | mistakes | avoid

WSJ: 15 Tax Mistakes You Should Avoid

By    |   Wednesday, 05 February 2014 10:41 AM

Tax season is upon us, and the growing complexity of the tax code makes it easier than ever to make a mistake on your return.

Doing so can be very costly. You may end up paying the IRS too much. Or you may pay too little, which could be very costly if you are audited.

The Wall Street Journal cites 15 specific mistakes you should avoid.

1. Claiming the wrong number of dependents.

2. Failing to itemize deductions.

3. Overstating charitable gifts.

4. Forgetting to claim charitable gifts made through payroll deductions or with IRA assets.

5. Reporting incorrect net-investment-income tax.

6. Overlooking medical expenses.

7. Double-dipping on education or dependent-care benefits.

8. Deducting points on a home refinancing.

9. Not paying the penalty on an early retirement-plan withdrawal.

10. Reporting an erroneous cost basis.

11. Not checking income reports for mistakes.

12. Overpaying tax on a sale of employer stock.

13. Mishandling the previous year's state tax refund.

14. Not disclosing a foreign account.

15. Not signing the return.

There are still steps you can take to save money on your 2013 taxes, even though we're well into the new year.

You have until April 15 to make your 2013 contributions to Individual Retirement Accounts and Health Savings Accounts, CNBC reports.

The maximum IRA contribution allowed for 2013 is $5,500, while the maximum HSA contribution is $3,250.

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Tax season is upon us, and the growing complexity of the tax code makes it easier than ever to make a mistake on your return.
IRA,tax,mistakes,avoid
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2014-41-05
Wednesday, 05 February 2014 10:41 AM
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