Common Tax Mistakes

Many taxpayers pay more tax than necessary because they claim the standard deduction instead of itemizing their deductions. The General Accounting Office estimates that over 510,000 taxpayers failed to itemize their deductions in 1998, even though claiming mortgage interest payments alone would have saved taxes. This one oversight is estimated to have cost these taxpayers over $311 million, or $610 per return.

Overpaying social security taxes is another common error taxpayers make. If you worked for more than one employer last year and you earned more than the social security base limit of $76,200, you overpaid your social security taxes. That's because each employer is required to withhold social security taxes until you've reached the limit on their payroll. In order to receive a refund, you must report the overpayment on Form 1040. 

If you made either of these common errors, it's not too late to correct your mistake. You generally have up to three years to amend your return and request a refund. If you've discovered these or other income or deductions that should have been reported on your original return, give us a call. We can help you set the record straight. 

Related pages:
        Tax Services

© Copyright 2001 Raymond S. Kulzick. All rights reserved. 010501.