{"id":14047,"date":"2025-04-24T14:42:16","date_gmt":"2025-04-24T14:42:16","guid":{"rendered":"https:\/\/finderica.com\/?p=14047"},"modified":"2025-04-24T14:42:16","modified_gmt":"2025-04-24T14:42:16","slug":"experts-reveal-3-common-tax-mistakes-that-could-cost-you-big","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=14047","title":{"rendered":"Experts Reveal 3 Common Tax Mistakes That Could Cost You Big"},"content":{"rendered":"\n<div>\n<figure class=\"embed-base image-embed embed-0\" role=\"presentation\"><figcaption><fbs-accordion><\/p>\n<p class=\"color-body light-text\" role=\"button\">Frustrated shocked african man having problems, feel confused looking at laptop screen at office<\/p>\n<p><\/fbs-accordion><small>getty<\/small><\/figcaption><\/figure>\n<p>As tax season comes to a close each year, many Americans rush to meet the April 15 deadline and celebrate when they received a big refund. But according to tax experts, these popular strategies might actually be costing you money.<\/p>\n<p>Mark J. Kohler, M.PR.A., C.P.A., J.D.,Founding and Senior Partner at KKOS Lawyers, specializing in tax, legal, wealth, estate, and asset protection planning and Timothy Wingate Jr., an IRS-certified tax specialist and founder of G+F Business &amp; Financial Consulting, say taxpayers often fall for three common traps \u2014 and correcting them can lead to smarter financial decisions all year long.<\/p>\n<p>Here\u2019s what people get wrong about taxes and how you can take a more strategic approach.<\/p>\n<h2>1. <strong>Filing By April 15 Isn\u2019t Always Necessary<\/strong><\/h2>\n<p>While the April 15 deadline is real, filing your return on that day isn\u2019t always required \u2014 or even wise.<\/p>\n<p>\u201cContrary to popular opinion, it\u2019s not the end of the world if you don\u2019t file your personal 1040 tax return by April 15,\u201d <a class=\"color-link\" href=\"https:\/\/markjkohler.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/markjkohler.com\/\" aria-label=\"Kohler\">Kohler<\/a> said. \u201cIn fact, it can be very strategic to <em>not<\/em> file and instead submit an extension. Getting an extension gives you time to get all your records in order.\u201d<\/p>\n<p class=\"\">Timothy Wingate Jr., an IRS-certified tax specialist and founder of G+F Business &amp; Financial Consulting, agrees \u2014 and offers practical advice for how to do it right.<\/p>\n<p class=\"\">Here\u2019s how to file an extension the smart way, according to Wingate:<\/p>\n<ul>\n<li><strong>Mail Form 4868.<\/strong> \u201cFile an extension by mail with the form 4868. Make sure you send it in certified mail with a return receipt,\u201d Wingate says.<\/li>\n<li><strong>Work with a pro.<\/strong> \u201cYou can file an extension with a tax professional who uses ProConnect Tax Online to make sure it is completed correctly and timely.\u201d<\/li>\n<li><strong>Consider paying up front.<\/strong> \u201cIf you owed money to the IRS last year, you can pay the same amount by the tax deadline to avoid any penalties when filing your extension.\u201d<\/li>\n<li><strong>Explore a payment plan.<\/strong> \u201cIf your tax liability has been assessed, you can request an installment agreement with the IRS to pay them back over time.\u201d <a href=\"https:\/\/www.irs.gov\/payments\/online-payment-agreement-application\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.irs.gov\/payments\/online-payment-agreement-application\" aria-label=\"Click here to apply.\">Click here to apply.<\/a><\/li>\n<\/ul>\n<p class=\"\">Filing an extension gives you until October 15 to submit your return\u2014but remember, it doesn\u2019t delay the deadline to pay any taxes owed. To avoid penalties or interest, it\u2019s smart to send a payment by April 15, even if your paperwork isn\u2019t ready.<\/p>\n<h2>2. <strong>A Big Refund Isn\u2019t Always A Good Thing<\/strong><\/h2>\n<p>Most people celebrate a large refund check \u2014 but Kohler says that mindset needs to change.<\/p>\n<p>\u201cOur number one cost in life is taxes,\u201d he said. \u201cIf we can minimize that, we can deploy that money in other areas that make us money. That\u2019s the concept of tax planning.\u201d<\/p>\n<p>Rather than aiming for a big refund, aim to owe nothing \u2014 and keep more of your paycheck throughout the year.<\/p>\n<p>Talk to a tax advisor about adjusting your withholdings, contributing to retirement accounts, or making strategic investments to reduce your taxable income.<\/p>\n<h2>3. <strong>Not Running Your Side Hustle Like A Business<\/strong><\/h2>\n<p>With nearly 40% of Americans working a side hustle, treating that income seriously is more important than ever.<\/p>\n<p>\u201cSide hustles aren\u2019t just income streams \u2014 they\u2019re tax planning opportunities,\u201d Kohler said. \u201cBut too many people miss out because they don\u2019t keep records or claim expenses.\u201d<\/p>\n<p>\u201cKeep separate accounts, track all expenses, and consult a tax professional,\u201d he said. \u201cThat way, you can legally deduct business expenses and potentially lower your overall tax bill.\u201d<\/p>\n<h2>Possible Deductions Include:<\/h2>\n<ul>\n<li>Home office expenses<\/li>\n<li>Internet and software costs<\/li>\n<li>Mileage and vehicle expenses<\/li>\n<li>Equipment and supplies<\/li>\n<li>Business travel and meals<\/li>\n<\/ul>\n<p>Accurate record-keeping is essential to claim these deductions \u2014 and to protect yourself in case of an audit.<\/p>\n<h2>Bottom Line<\/h2>\n<p>Don\u2019t wait until tax season to think about your tax strategy. Avoiding these common mistakes \u2014 filing blindly by April 15, celebrating big refunds, and ignoring your side hustle\u2019s business status \u2014 can help you keep more of your money.<\/p>\n<p>Instead, work with a trusted tax advisor, file smarter (not faster), and take full advantage of deductions and planning strategies year-round. Your future finances will thank you.<\/p>\n<\/div>\n<p><a href=\"https:\/\/www.forbes.com\/sites\/jaimecatmull\/2025\/04\/23\/experts-reveal-3-commontax-mistakes-that-could-cost-you-big\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Frustrated shocked african man having problems, feel confused looking at laptop screen at office getty As tax season comes to a close each year, many Americans rush to meet the April 15 deadline and celebrate when they received a big refund. But according to tax experts, these popular strategies might actually be costing you money.<\/p>\n","protected":false},"author":1,"featured_media":14048,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[242,1279,330,442,1365,5046,97],"class_list":{"0":"post-14047","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-big","9":"tag-common","10":"tag-cost","11":"tag-experts","12":"tag-mistakes","13":"tag-reveal","14":"tag-tax"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14047"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/14048"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}