Income tax time is a time that most people dread. All knows the dreaded date April 15th. Though everyone strives to do their incomes taxes correctly, there are common mistakes that more people make than they realize.

 

For starters, not researching whether you have to pay the Alternative Minimum Tax. Most people believe that they do not qualify since they do earn a high amount. However, in past years this amount has been changed. And it was found that this past year, more people should have paid the AMT than they did. This could lead to owing the IRS this money plus interest, not to mention the stress from having to have your income taxes for the past five years re-examined. Safe yourself some time and do the research.

 

Secondly, most couples did not calculate the difference between filing jointly or separately. Most automatically think jointly is best. However, there are times when filing separately has its rewards. The couple needs to calculate both scenarios and base their decision on the results, not just what may be easier.

 

For those who gamble, they are allowed to deduct for losses up to the amount of their winnings. This is something that most people do not realize. However, good records have to be kept that can be justifiable if the IRS questions it.

 

Many people forget to claim carry-overs from the prior year. There is a certain amount that is allowed in investment losses. However, if the amount is higher than the amount allowed, the left over amount can be carried over to next year's income taxes. This could potentially amount to significant returns.

 

Another common mistake that more and more people are running into is to calculating their taxes themselves with software that is not certified. This is a huge mistake that is costing thousands, if not millions of dollars from taxpayers to be paid. For those who are intense on doing their income taxes themselves, then they need a software program that allows for live help from a technician if they need it. Software that automatically calculates deductions is also a great help.

 

Income taxes are a huge part of people's finances. Many people take months to gather paperwork to calculate what they owe or what they will receive in a refund. Make it easier for yourself by not doing this common mistake. It may take more time to do your taxes correctly, but it beats being audited and having to owe the IRS for ten or more years.