Whether you do your own taxes or have them prepared for you, watch out for these common mistakes:
Assuming everything is the same as last year. Income, deductions and the health insurance mandate change. If you’re preparing your own taxes, stay up on the tax law changes that pertain to you.
Using the incorrect filing status. A married person using the Single status because their spouse has no income, or they’re impatient or angry and just want to get it done. If you're married and lived together all year, you can only file Married Filing Joint or Married Filing Separate. You cannot file Head of Household or Single.
Not taking all available credits. For example, if you’re between the ages of 25 and 65 and have low income, you may be eligible for Earned Income Credit even if you don’t have children. The amount of the credit is much less, but it's money.
Clerical errors. I've been preparing taxes for 25+ years and I still make typos. It happens. So check and double check your return figures.
Not subtracting income from state returns. Arizona allows a $2500 income deduction for Federal or Arizona State pensions. This is often overlooked. Also, Arizona does not tax Social Security income, so remember to subtract that from your Arizona taxes.
For help with preparing your income taxes contact H and R Block at 520-625-8732.