Tax time can be scary. So many variables and unknowns, just like the boogie man in your closet you don’t know what you are dealing with until you turn the lights on! Even though not all of our fears are real there are things you should watch for, here are a few.
Here are 3 things to watch for this tax season…
How do you know what is true and what isn’t when it comes to tax time? A friend might think they know what they are doing but if they are not an accountant don’t listen! A buddy with bad advice can cost you thousands of dollars down the road. Even when you start reading blogs (even this one) make sure you know the source! Are they a professional with a designation or someone that read a book so they figure they know it all? I must admit even I read some “tax tips” this year online and when I asked my accountant it turns out the information was false. Do yourself a favour, do your research!
If you are doing your own taxes you are emotionally involved. Emotions and money can be a very slippery slope for many people. When you are emotionally involved you often see things they way you want to, not the way they are. (If you want to watch a great documentary about human behaviour check out “Dis-Honesty” on Netflix.) It might be tempting to stretch the truth about that one medical bill or receipts that really weren’t for business. Little lies or stretches of the truth will cost you big time if you get audited! Using a professional doesn’t dissolve you of your responsibility but it gives an non-biased opinion with less chance of major mistakes. If you insist on doing it yourself be sure to check and double check with all of the rules & regulations which can be found on the tax guides.
This could actually squeeze in with number two. We are responsible for our own stupid mistakes. It feels easier to blame others but when it comes down to it we make our own decisions. Don’t fall into the trap of spending your tax return like a bonus. In case you didn`t read my last blog the tax return is a refund not a bonus! Don`t run out and spend your tax return, do something smart with it! If you need ideas on smart ways to spend your tax refund check out the blog 5 smart ways to spend your tax refund.