Whether you decide to file taxes on your own or contact an accountant, it’s important to file them correctly, on time. We reached out to one of Florida Tech’s accounting professors, Dr. Angel Otero, Assistant Professor of Accounting and Academic Chair for Accounting and Finance, to answer some of the common questions people face when filing their taxes.
I’m a First-Time Tax Return Filer. What Should I Do?
If you are filing taxes for the first time on your own, Otero suggests to start by familiarizing with the general information available at the Internal Revenue Service (IRS) website.
“The IRS.gov website offers basic tools for individual taxpayers, as well as for businesses and tax professionals. For individual taxpayers, it has helpful guidance information, including instructions on how to properly file income taxes online, information on common tax credits and deductions, refunds and payments, and many other links with additional information for the taxpayer,” he said.
Tax filing software is an option for individuals who prefer to automate some of the process, which may limit errors and reduce costs.
If you want to become even more tax-savvy, Otero suggests resources such as Thomson Reuters and USA.gov, as both provide “relevant research and guidance solutions on the preparation of income taxes.”
What Are the Most Common Mistakes People Make When They File Taxes?
Tax filing mistakes, even tiny ones, may delay the processing of your tax return, and possibly lead to harsher penalties from the IRS. According to Otero, some of the most common tax filing mistakes include:
● Submitting incomplete forms
● Missing or using inaccurate social security numbers
● Claiming the wrong status (i.e., claiming “head of household” instead of “single”)
● Using the incorrect amount for deductions or credits
● Misspelling names
● Making math errors
● Typing the wrong bank account and routing number
Visit the IRS website to learn about additional errors to avoid.
Do Freelancers & Self-Employed Professionals Need to File a Tax Return?
“Freelancers are considered to be self-employed, meaning that any income generated by the freelancer (or business owner) must be reported and pay tax,” Otero said. “Working as a freelancer or self-employed has many benefits, but also brings in tax disadvantages. While the freelancer or self-employed professional can enjoy deductions that are not typically available to the average income taxpayer, they also face additional taxes.”
If you are unsure your situation, the IRS offers guidance about who must file a tax return.
Increase Your Knowledge By Earning A Degree in Accounting
Want to learn more about income tax and accounting core competencies? Florida Tech offers various 100% online learning programs in accounting to help students establish a foundation for becoming a certified public accountant (CPA), certified management accountant (CMA), or certified internal auditor (CIA), among others.
Earn an AA, BA or MBA in accounting and learn from faculty who are practitioners in their fields while exploring topics such as tax planning, auditing, and financial and managerial accounting.
“Our accounting program provides a solid foundation for students planning to take the CPA examination and prepares them for graduate accounting studies,” Otero said.
