Skip to main content

Tax Blunders All Mompreneurs Need To Avoid

If you’re self-employed like me, then you’ll know all about how long and arduous filing your own taxes can be. Although there’s a lot of information and tax calculator tools out there, countless people still make some major blunders when filing their taxes, and wind up in some hot water because of it. To help you get the whole ordeal out of the way quickly and painlessly, here are some of the most common mistakes you need to avoid.
Simple Miscalculations
The most common tax-filing mistake by far is simply not getting your maths right. Mistakes in transferring figures from one schedule to another, or more basic acts of arithmetic, will get you a correction notice immediately. The easiest way around this is getting yourself some reputable tax software. This will prompt you with specific fields to fill out, do the maths with no room for human error, and then come back with everything you need to know. Of course, you’ll still need to make absolutely sure that the information you’re entering is accurate. The IRS is certain to pick up on a discrepancy when they find one. Take it too easy, and you may end up having to chew through taxes, IRS audits, and more with these lawyers. Get it right the first time, and don’t leave yourself too much room for error!
Misspelled and Different Names
Image from Flickr


Although the IRS is mainly there to deal with numbers, a supposedly trivial mistake in the names included in your returns can cause all kinds of trouble. If the names of you, being the taxpayer, your spouse or your children don’t match their identification number that the SSA has on their records, then it can lead to the IRS either aborting or slowing down the process of pushing through your tax return. This is a surprisingly common mistake, but the people who are most at risk of it are new wives. A lot of women change their surnames when they marry, which is now also an IRS-recognised possibility in same sex marriages. If you’ve recently been married and changed your surname, first of all, congratulations! Secondly, if you haven’t contacted the SSA about your name change already, put this at the top of your to-do list!
Filing Status Mistakes
You also need to double and triple-check that you’re using the right filing status for your personal situation. You have five distinct options, and each one could have a profound effect on your ultimate tax bill. For example, if this is going to be your first tax return since you became divorced, and you’re a single parent, then choosing “head of the household” is generally going to be more beneficial. If you’re still married, it’s a good idea to keep you and your partner on the same tax return. Your tax-filing status is considered a fairly negligible detail in amongst all the others, but it’s something that you shouldn’t overlook if you want everything to go smoothly. Find out what each status entails, and choose one that’s going to fit your personal situation.

Comments

Popular posts from this blog

Reunion At Museum Restaurant At Starling Mall

CLASSMATES REUNION... but not from my year.  i just tagged along with my sister who wanted my company that evening.  She was going to meet up with some of her classmates at The Starling mall.  I did not want to drive there, taking Grab is a much easier and practical choice, considering it was rush hour in the evening.  Furthermore, I am not familiar with the roads... both of us might panic on the federal highway.  LOL... 
Having someone to take us there is so stress free, we only have to pay RM20 for the ride.  :)  Our first time to Startling Mall and being made familiar by one of the bloggers, Phong Hong who used to post up her lunch meals taken from there.  We were supposed to meet up at 7pm but we reached there an hour earlier to "survey" the shops and ended up buying a "bit."  Blame it on my sister who always like to give positive comments most of the time!   The dinner was held at The Museum.... Originated from Ipoh actually and how there is a branch here in …

Getaway Weekday Trip To Cameron Highlands

UPHILL....

It has been two years since I last made an overnight trip to Cameron Highlands.  It was an impromptu trip, we only talked about it a couple of nights and the next day, all was arranged and done.  My friend rented the apartment from her niece, for two nights, we got a good deal, each of us only paid RM50 for a two nights stay.  Of course, it was an off peak season, otherwise we could not get the good deal offer.  LOL.... My friends planned everything from A to Z, they even went marketing to buy all the food stuff needed, pre-cooked some to take up for our steamboat dinner in the evening.  The weather was very cooling and nice, we had to wear our jackets especially in the evenings and mornings. 

Started off our journey by eating something light from Ipoh cos we have planned to take something good for lunch in Tringkap.  On the way, we stopped at a place called Green View Garden for some desserts before proceeding for our lunch.  Hmmmm... desserts before main meal?
Our fir…

Gathering At Top Grade Hot Soup, Ipoh

HOT SOUP ON RAINY DAYS... Yes, nowadays it pours, almost every day and in the late afternoon.  So cooling that I do not need to switch on the air con these days.  For cooling days, it is best to drink hot soup but do not land into one, okay?  LOL.. 
A few of my classmates planned an evening out at Top Grade restaurant at Festival Walk area.  I did not know that Ipoh has a branch, my first time was taken in Penang.  The boss told us that they have a branch in Ipoh, that sounds great!  I like their soup cooked with coconut water, the sweet taste is there... but funny, I don't know it is me or the soup, I still find the one I ordered in Penang is much nicer than this Ipoh branch.  I tried two times in Ipoh, my verdict?  The soup is still better in Penang.. okay, Penang wins!  The coconut soup base looks like this.....  Consisting of chicken, pig stomach, chestnuts, corn, red dates...  It cost RM58 since I am a member.. otherwise it is RM78... Others are add-ons...  And the soup gang…