As tax season approaches, many people are eager to maximize their deductions and reduce their overall tax burden. But if you’re not careful, a few common mistakes could lead to missed opportunities—or even an audit. Here’s what you should watch out for when trying to claim tax deductions.
1. Forgetting to Track Small Expenses
Many taxpayers overlook smaller expenses, thinking they won’t add up to much. However, costs like mileage for work-related trips, home office supplies, or even charitable donations can provide valuable deductions if tracked properly throughout the year.
2. Misunderstanding Deduction Eligibility
Not every expense qualifies as a deduction. For instance, home office deductions can only be claimed if the space is used exclusively for work. Misinterpreting the rules or stretching the truth could land you in hot water with the IRS.
3. Ignoring Changes in Tax Laws
Tax laws change regularly, and what was deductible last year may not be eligible this year. If you’re not keeping up with the latest tax codes, you could be missing out on opportunities or making mistakes that could trigger an audit.
4. Not Seeking Professional Help
Even if you’re diligent about tracking expenses, tax laws can be complex. Hiring a professional tax preparer, like our team at Jake Hunter’s Tax Preparation & Bookkeeping, ensures you’re maximizing deductions while staying compliant with IRS regulations.
Don’t let common mistakes prevent you from getting the most out of your tax return.
If you’re unsure about what deductions you can claim or how to avoid pitfalls, reach out to Jake Hunter of Hunter Tax & Bookkeeping for professional assistance.
We’re here to help you every step of the way!