Mistakes You Absolutely Do NOT Want to Make If You Owe a Balance on 1040 Taxes

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Many Americans look forward to tax refunds every year. Unfortunately, refunds are never a guarantee. Some people are lucky enough to break even, but many employees owe an annual balance. If you count yourself among these unfortunate individuals, it’s imperative that you pay correctly and on time. Avoid the following mistakes at all costs:

Failure to Pay Other Forms of Income

If you’re like many Americans, you run a side hustle in addition to your main job. Side gigs can be excellent sources of income, but with a caveat: they complicate taxes. It is crucial that you report on income not automatically included on Form 1040, even if you fail to receive Form 1099.

Late Payments Without an Extension

It sounds simple, and yet, many taxpayers assume that they can get away with late payments. It doesn’t matter that you filed your return on time; if you pay late, you’ll be hit with considerable penalties and interest. If you’re simply incapable of meeting the April 15th deadline, file an extension to avoid penalties. The process is surprisingly simple — and it could save you a lot of money and grief.

Failure to Fix Mistakes

Did you notice an error on Form 1040? Typos are common, but they shouldn’t be ignored, particularly if they impact how much you owe. If you mess up, you can correct the mistake via Form 1040-X. Your failure to file an amended form could be more damaging than the mistake itself.

A little tax assistance now can save you a lot of hassle down the road. Look to the Highland Tax Group for tax consulting, tax resolution, and audit representation. Call 720-398-6088 today to learn how we can help you avoid problematic tax errors — or handle your existing tax situation.