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.

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

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

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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.

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

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

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

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

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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.

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