Oct 17 Tax Extension Deadline - Errors To Avoid

Experts advise that if you're racing to meet the Oct. 17 tax extension deadline, you should avoid skipping important paperwork.

According to the IRS, filing a complete and proper return that contains all essential forms reduces processing delays.

You can avoid blocked refunds and IRS warnings by filing an error-free return online with direct deposit.

Before filing your return, you must submit income forms. W-2s from employers, 1099-NECs for contract labour, and 1099-Gs for unemployment are examples.

Forms for write-offs may include 1098 for mortgage interest, 5498 for IRA deposits, and 5498-SA for health savings account contributions, among others.

A prevalent fallacy is that if a client does not physically get cash from their investment, it is not taxed.

Omissions of 1099-B capital gains and losses and 1099-DIV dividends and distributions are common.

1099-B or 1099-DIV for investment income missing

Another common omission is failing to file Form 8606 for nondeductible IRA contributions.

Nondeductible IRA donations have no Form 8606

Over 70 and a half-year-old investors can donate up to $100,000 per year from a pre-tax IRA to reduce their AGI.

Errors on 1099-R for qualified charitable distributions