Filing taxes can be a stressful and overwhelming experience for many people. With all the forms, numbers, and deadlines to keep track of, it’s no wonder that some things can slip through the cracks. However, forgetting to include certain items in your tax filing can have serious consequences, such as penalties, fines, and even an audit. In this article, we will go over some of the things that people commonly forget to include in their tax filings.
1. Side Income
One of the most common things that people forget to include in their tax filings is side income. If you have a full-time job and also do some freelance work or run a small business on the side, you must report that income on your tax return. Many people assume that because they did not receive a W-2 or 1099 form for that income, they do not need to report it. However, the IRS requires you to report all income, even if it is not reported on a form.
2. Charitable Donations
Another thing that people commonly forget to include in their tax filings is charitable donations. If you made any donations to charitable organizations throughout the year, you may be able to deduct those donations from your taxable income. However, you must have documentation of those donations, such as a receipt or a letter from the organization. Keep track of all your charitable donations throughout the year so that you can include them in your tax filing.
3. Medical Expenses
If you had any significant medical expenses throughout the year, you may be able to deduct those expenses from your taxable income. However, many people forget to include these expenses in their tax filings. Keep track of all your medical expenses throughout the year, including doctor’s visits, prescriptions, and medical procedures. You can deduct medical expenses that exceed 7.5% of your adjusted gross income.
4. Business Expenses
If you run a small business, you may be able to deduct some of your business expenses from your taxable income. However, many people forget to include these expenses in their tax filings. Keep track of all your business expenses throughout the year, including office supplies, travel expenses, and advertising costs. You can deduct these expenses from your taxable income, but you must have documentation of the expenses.
5. Retirement Contributions
If you contribute to a retirement account, such as a 401(k) or an IRA, you may be able to deduct those contributions from your taxable income. However, many people forget to include these contributions in their tax filings. Keep track of all your retirement contributions throughout the year so that you can include them in your tax filing.
6. State Taxes
If you live in a state that has state income tax, you must include that tax in your tax filings. Many people forget to include state taxes in their tax filings, especially if they moved to a new state during the year. Make sure that you include all state taxes that you paid throughout the year in your tax filing.
In conclusion, there are many things that people commonly forget to include in their tax filings. By keeping track of all your income, expenses, and deductions throughout the year, you can ensure that you are filing your taxes accurately and avoid any penalties or fines. If you are unsure about what to include in your tax filing, consider working with a tax professional who can help guide you through the process.
