Tax Tip - Instant Online Quote - Steven M. Vogt, CPA

Reporting prior year's state tax refund as taxable when it is not.
Reporting cancelled debt as taxable income when it qualifies as nontaxable.
Reporting the wrong type of credit or deduction for education expenses.
Incorrectly reporting income/deductions on their Arizona (AZ) tax return. AZ does not conform to all federal tax laws. AZ does not tax social security benefits, allows some retirement income to be excluded from taxable income, allows a credit for some donations and has no threshold (federal does) when deducting medical expenses.
Not reporting excess social security taxes withheld (when more than one job).
Paying the 10% IRS penalty for early withdrawal from a retirement account when qualifying for an exception.
Claiming Single filing status even though they qualify for Head-of-household (even if not claiming a dependent!).
Claiming Married Filing Jointly filing status even though Married Filing Separately would lower their taxes.
Underreporting self-employment expenses and rental-related expenses.
Reporting social security benefits as taxable when, in many cases, they are not.
Missing itemized deductions (e.g., most mortgage insurance premiums, undervaluing noncash donations such as clothes, furniture and household goods).

Steps