In the rush of filing taxes, it can be easy to overlook deductions that could help you save money. Tax deductions are expenses you can subtract from your taxable income. Knowing which expenses can be claimed as deductions is the key to limiting the hard-earned money you owe the government. From student loan interest payments to health expenses, here are some of the most overlooked tax deductions you should know: How do deductions work? Tax deductions lower the amount of tax you owe. A standard tax deduction—a single deduction of a fixed amount—is determined by your filing status: single, married, head of household, or filing jointly. You can claim the standard deduction without providing additional documentation or expense receipts. In contrast, itemized deductions are specific expenses you can deduct from your taxable income, such as clinical expenses, charitable contributions, and mortgage interest. Most overlooked tax deductions Job hunting expenses If you are looking for a new job in your existing field, you may be able to deduct expenses such as those incurred in resume preparation, traveling for interviews, and career counseling services. Charitable contributions Many know that cash donations to charity can be claimed as deductions but often overlook non-cash contributions like clothing or household items.

The goal of a side hustle is to earn extra money to support one’s lifestyle. With the current economic scenario, people are constantly looking for sources of income besides salaries. It provides greater financial security and the freedom to pursue one’s interests while maintaining job security. The most important aspect of a side hustle is that it is exciting enough to keep one interested. Here are some of the most creative side-hustle ideas for 2023. Best side hustle ideas for 2023 Online surveys Filling online surveys is one of the simplest and most popular side hustles to get started with. Although it might not be the highest-paying job available online, it can be a great place to start learning about time management and balancing two careers, which may eventually lead to finding something more significant. For each survey, people can earn between $1 and $20. Writing blogs Starting a blog can be a fantastic option for people with a creative side who want a voice and a creative outlet. Most blogs generate a little money at first, but as their readership and reach grow, they generate more and more money. Bloggers can earn roughly tens of thousands of dollars per month.

As the end of the financial year closes in, many people find themselves scrambling to file income tax returns in time this year. The Internal Revenue Service (IRS) issues strict guidelines for ensuring a smooth and quick tax filing process. The last thing you want is a notification from the IRS citing an issue with the income tax return submission. So, here are six mistakes to avoid when filing your income tax return: Filing returns prematurely You might receive documentation regarding your current financial status, and this information has to be updated with the IRS. Filing prematurely can result in mistakes like omissions that only delay the processing of returns. Choosing the wrong form or filing status The IRS issues several forms for individuals, businesses, commercial establishments, and government entities to file returns. Ensure you choose the correct form and update the filing status on the official website. If there are dependents in the house or you are filing for a joint return, your filing status can vary accordingly. Making calculation errors Adding the wrong amount, excluding critical tax breaks, or even making mathematical errors while computing your income tax return are issues that IRS software can detect. However, miscalculating the return can delay the process.

The Internal Revenue Service, or IRS, is the governing authority that processes tax returns filed by individuals and businesses and issues refunds. The IRS has issued sizeable refunds worth thousands of dollars in recent years. Individuals can use the money to meet daily expenses and pay pending bills. But to be eligible for prompt refunds, here are some common mistakes you should avoid while filing your tax returns this year. Updating the wrong filing status The IRS lets you file as a single taxpayer, a married taxpayer filing jointly/separately, a qualifying widow/widower, or a sole head of the household. Entering this information correctly is critical while updating the return. Filing under the wrong section can delay processing and refunds. You might even be subject to penalties if there are errors in the calculation. Not reporting all taxable income Salaried employees working for an organization should properly mention any income subject to taxes on Form W-2. Freelancers can report their income using Form 1099. Different kinds of employment and earnings are subject to different tax slabs. The bottom line is that you should never underreport your earned income in the said financial year. If the IRS notes discrepancies, it can order an audit that will lead to subsequent penalties and interest.

Tax return filing is a strenuous process for many people. Although preparing tax returns may feel unpleasant, it is crucial to avoid making mistakes. While mistakes may not necessarily involve an audit from the Internal Revenue Service (IRS), they may invite additional penalties or smaller refunds. Due to these factors, it is imperative to be aware of the common errors people make when filing their tax returns and ensure to avoid them. Not following the latest tax news Changes in tax laws may impact how you file your returns. Therefore, it is essential to keep up with the news. You should know which tax return you are filing and have access to the most current information about the same. For instance, people over 65 qualify to file for Form 1040-SR, while non-resident aliens who earned their income through work efforts in the country during the tax year must file Form 1040-NR. Tax preparation software can help you choose the correct form. Being unaware of your filing status Knowing your tax filing status can help you save time and money. For instance, filing as the head of the household (someone who has a dependent and pays for over 50% of all household expenses) offers more favorable tax rates than filing as a single taxpayer.

Financial planning is a complicated endeavor that does not stop with simply opening savings and certificate of deposit accounts. You need an expert who can advise you on the best investment and diversification strategies for building a solid portfolio to secure your financial needs. But before hiring a good advisor, it is essential to understand how the process works and how to proceed from here. These questions can be a starting point. Here are the five questions you must ask a financial advisor: What are your qualifications? Financial planning is a vast topic with several areas of specialization in practice. So, you need to understand whether the advisor provides assistance for financial planning in general or focuses on a specific aspect of portfolio building. Primarily, they practice with a Certified Financial Planner (CFP) qualification approved by federal regulatory authorities and guidelines for safe practices. What is the range of services you offer? Their experience will vary depending on the type of services provided, ranging from planning for retirement to tax mitigation strategies and real estate trust services. Some CFPs work as fiduciaries, ensuring they keep your best interests at heart when planning and strategizing your finances. You must also check to confirm any disclosures on the record of previous misconduct or legal sanctions imposed on their range of services.

In recent years, there has been a rise in online financial fraud incidents. Scammers and fraudsters use fake websites, emails, text messages, and phone calls to steal people’s personal data, including bank accounts and social security numbers. They employ various methods to deceive individuals into giving away their valuable private information, all with the intention of stealing their hard-earned money. To prevent financial fraud, here are some mistakes you should avoid. Don’t fall for claims that say you have won a prize One common method scammers use to obtain private information is by posing as representatives of popular brands or organizations. They may claim that you have won a lottery or that someone entered you into sweepstakes and you have won a large sum of money. But to receive this money, you will have to pay a fee. Under this pretext, they might steal your bank account information and siphon off all your savings. Do not fall for calls from scammers pretending to be from an organization you know Often fraudsters pretend to be representatives of the government. They use real names of federal agencies such as the Social Security Administration, Medicare, or the IRS. Some even make up names that sound official.

Planning for the future is a long-term process that needs to address multiple factors. The ideal financial planning could help you and your family live stress-free after retirement and in the moment. However, as finances could involve various factors like market conditions, family situations, earning capacity, and mental framework, it is possible to make mistakes. So if you are considering safeguarding yourself and your family financially, here are six planning mistakes you should avoid. Procrastinating the plan Planning isn’t the most exciting topic, and several people even shy away from discussing it. Some common reasons that most people avoid planning are because they have just started earning, do not have much money, or believe they have a plan in their head. However, this could significantly hamper saving in the long run. Therefore, it is imperative to start planning earlier so that you are better able to estimate expenditures and savings. Mixing insurance and investment Investments help earn income, while paying insurance helps with risk management. But many consider the latter a part of their investments. You should note that while an insurance plan could help financially support you and the family during emergencies, it will not add to your wealth.

Financial scams are a common phenomenon in the country; according to data released by the Federal Trade Commission, consumers reported losing more than $3.8 billion due to investment scams in 2022. So, it is important to remain vigilant and practice caution before initiating any online interaction or transaction with a business or a stranger. Here is a look at some common mistakes you should avoid to protect yourself from financial fraud: Using one password for multiple accounts You should frequently change passwords for your sensitive accounts, like those on banking apps and other platforms that have access to your confidential information. So, your accounts investment portals and digital wallets should have unique and strong passwords that are not easy to crack. It is also important to note that using one password for all your accounts increases the risk of fraud. When one account is hacked, others with the same password can also be hacked. Falling for shopping scams Online shopping has made it extremely convenient for customers to order anything from anywhere. While this has helped businesses grow, it has made room for all kinds of scams. You should ensure that the business you are buying from is legitimate. Not only that, you should use a secure Wi-Fi network to carry out all kinds of transactions.

Today, digital transactions have become the norm. This has made safeguarding one’s financial information all the more important. Sadly, credit card fraud remains a prevalent concern, and numerous victims are falling victim to the evolvingly cunning tactics employed by cybercriminals. One way individuals can safeguard themselves from fraudulent activities is by avoiding some credit card mistakes that leave them susceptible. Avoiding these mistakes can significantly bolster their defenses against potential threats. Neglecting strong password Most individuals prefer using easy-to-use and easy-to-remember passwords to offer them easy access. However, easily guessable passwords such as birthdays and phrases can make things easier for cybercriminals. It is advisable to opt for complex passwords comprising a mixture of upper and lowercase letters, numerals, and special characters to avoid granting them unauthorized access. Regularly changing passwords and employing a password manager can further fortify online security. Disregarding secure websites for transactions Another grave mistake credit card users make that makes them susceptible to fraud is entering their details on unsecured websites. This is one place where cybercriminals exploit vulnerable sites to harvest sensitive data. To mitigate this risk, individuals should only transact on secure websites. Checking for “https://” in the URL and looking for a padlock icon in the address bar are some telltale signs of a secure connection.