9 Costly Mistakes Taxpayers Make

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9 Costly Mistakes Taxpayers Make

For as much as Americans complain about paying taxes, we sure leave a lot of money on the table--thanks to poor tax planning, sloppy filing and the sheer complexity of the tax code. You've probably seen the H&R Block ads highlighting the $1 billion--or $460 per do-it-yourself taxpayer--it says Americans overpay due to filing mistakes. We think Block wildly underestimates the problem. Heck, the IRS is holding onto $760 million in unclaimed refunds for folks who didn't even file a tax return in 2010.

Some taxpayer mistakes, such as providing the wrong Social Security number on your return, will simply delay processing of your return (and, potentially, your refund). But other mistakes, including the nine featured here, may cost you more than time. Plan ahead and take extra time with your return to avoid these expensive taxpayer errors.


Having Too Much Tax Withheld

Each year, about 75% of all workers receive tax refunds in the spring, proof positive that too much was withheld from their checks during the previous year. In so doing, you've given the government an interest-free loan when you could have been putting that money to work for you throughout the year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Taxes

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