Taxes, taxes, taxes! As tax-filing season approaches and you start collecting and organizing all your receipts, make sure you also do your research in terms of maximizing your tax savings. Start by learning how to avoid these common mistakes taxpayers make when they file for their taxes.
Getting a big refund
Filing taxes can be stressful and complicated but at the end of the day, receiving a big refund can make it all worth it. But don’t pop the champagne bottle just yet because getting a refund every year is, in fact, a bad thing.
Why? Because we’re talking about money that you’re made throughout the year but failed to receive because you did not file your taxes correctly. In other words, you didn’t claim the correct number of exemptions on your W-4 and Uncle Sam withheld too much from your monthly paychecks. You could have used that money for other things such as paying off debt or putting it away in your savings account.