LAS VEGAS (KTNV) — As tax season gets underway, millions of Americans are already seeing important documents roll in, W-2s, 1099s, brokerage statements, and even crypto tax forms.
Tax experts say now is the time to get organized, because failing to report income, even if you never received the form, doesn’t mean you’re off the hook with the IRS.
While filing early can mean a faster refund, experts warn rushing through a return or missing paperwork can lead to costly mistakes.
WATCH | Shakeria Hawkins breaks down the most common tax mistakes that could cost you hundreds, or even thousands, of dollars:
For Las Vegas taxpayer Paul Sprada, filing early has become routine.
“It’s the same thing year after year,” Sprada said.
Sprada, who has been disabled and retired since 2004, says filing taxes is much simpler now that he’s no longer working.
“Now it’s a lot easier. I used to own a business, but because of this,” he said, gesturing to his walker, “I don’t work anymore. There’s almost no paperwork now.”
But tax experts say not everyone has it that easy.
Mark Steber, a tax expert with Jackson Hewitt, says many problems start when working Americans rush or fail to include all required information.
“One in five people don’t claim their Earned Income Tax Credit every year, that’s about $15 billion,” Steber said.
According to Steber, the number one mistake he sees year after year is taxpayers failing to claim all the credits and deductions they qualify for.
“So the biggest mistakes I see are when people get in a hurry, wait until the last minute, or do it on their phone on the way to work,” Steber said. “They leave off a credit and that money is gone forever.”
Other common mistakes include not double-checking tax forms for errors, missing filing deadlines, or not filing at all.
To avoid those pitfalls, Steber recommends staying organized, protecting personal tax documents, and using a trusted tax professional, even if you normally file on your own.
Sprada says he learned that lesson the hard way.
“Especially when you’ve been investigated,” he said.
Tax experts say slowing down, double-checking paperwork, and making sure every eligible credit is claimed can make a big difference, potentially saving taxpayers hundreds or even thousands of dollars.
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