7 Tax-Filing Fears
That Freak Us Out
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Admit it. You're afraid.
That's OK. A lot of us are. And our tax fears, sometimes irrational, sometimes warranted, can cause us to do a lot of dumb things when it comes to filing our annual returns.
Click through our gallery to see seven typical terrors that intimidate people at tax time. But have no fear, Bankrate also shares the fixes that will keep you smiling while filing.
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Next: Tax Fear No. 1 -
Afraid you can't do your taxes yourself?
This fear, unfortunately, is too often justified. And it gets more true every tax season as federal lawmakers add provisions year after year.
The Remedy: Don't be afraid to ask for help. You have lots of preparer options, personal accountant to franchise operations, or computer software might be enough to help you file with a bit more confidence. Take a look at your tax needs, then find the tax assistance that best meets them.
Next: Tax Fear No. 2 -
Afraid you'll overlook a tax break?
Even folks who are brave enough to tackle their taxes on their own often face this fear. Again, it's not an unreasonable one. And once again, those folks in Washington, D.C., feed this fear.
The Remedy: Accept that tax filing is going to take some homework. Check out the countless publications -- so you'll know exactly where this year's taxes might trip you up. You also can turn to software or a tax pro for help.
Next: Tax Fear No. 3 -
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Afraid you'll make a mistake that will cost you?
This includes things as simple as filing the wrong tax form. Or they choose the incorrect filing status, such as single when they're eligible to file as the more tax-advantageous head of household.
The Remedy: Slow down. Answer all your tax professional's questions. If he or she says to provide more information, then provide it. A little extra work and attention to detail could cut your tax bill or get you a bigger refund.
Next: Tax Fear No. 4 -
Afraid that your tax adviser is a crook?
A 2006 report found that in a limited study of commercial tax preparation chains, all the returns completed were wrong to some degree. In 2007, the IRS alleged that some Jackson Hewitt franchises filed bogus returns for clients.
The Remedy: Remember the adage "If it sounds too good to be true, it probably is." Start with the hiring process. Investigate potential preparers and thoroughly check out each one.
Next: Tax Fear No. 5 -
Afraid you'll get audited?
If fear No. 4 comes true, then this is definitely one to be scared of. But overall, the risk of audit is small -- about 1 percent of individual returns were audited in 2006. Never let fear of IRS questions keep you from filing.
The Remedy: Keep good records, especially if you're self-employed. People who work for themselves and file Schedule C with their returns tend to get scrutinized a bit more, so your business record-keeping needs to be more precise.
Next: Tax Fear No. 6 -
Afraid to e-file since your info could be stolen?
Yes, identity theft is a major issue. The IRS keeps track of e-mail phishing scams that falsely claim to be from the tax agency. The biggest problem in recent years, though, has been with information left on laptop computers that were lost or stolen.
The Remedy: Install a firewall and virus protection, and then update it regularly. Taxpayers still must trust the IRS to safely store your data, but at least you can know you did your part in the security process.
Next: Tax Fear No. 7 -
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Afraid to file because you can't pay?
The only thing scarier than filing taxes is what could happen if you don't file. The IRS penalty for not filing is actually worse than if you file but don't pay your tax bill in full.
The Remedy: File! And file on time. If you can't afford to pay your full tax bill, send at least a down payment. The IRS also has payment plans. Though these add interest charges to your tax bill, at least you can be assured that you're meeting your filing and payment obligations.
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Who Needs to File?
The IRS requires most of us to file a federal income tax return every year, but not all. See if you meet the following income thresholds to determine whether you must file a federal income tax return for 2008. Also, see what your tax-filing status should be.
See Who Must File a Return
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Which Tax Forms to Use
Most people hate filling out tax forms almost as much as they hate forking over dough to Uncle Sam. So if you have to fill 'em out, make sure you're filling out the right ones!
See Which Tax Forms to Use
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More on Taxes From Bankrate
Recent Comments
Sydshealingminds 11:08:31 AM Feb 22 2008
oh my god all you people that are letting obama the black muslim win this election----if the race is about him and mccain--please vote for mccain even though he is an idiot too---do not let obama win --we will be screwed
LeatherLollipop 12:52:36 AM Feb 08 2008
YES, you are DAMN RIGHT, he needs to be tortured, waterboarded, or whatever the hell it takes to get him to tell us where he put that bomb in order to save thousands if not millions of innocent lives!! You liberals are turning America into a bunch of WIMPS!! Who the hell cares if a terrorist gets tortured!!! Oh yeah, LIBERALS do!!
3. You think your taxes are HIGH now?? Wait till a Liberal Democrat gets in office. We will be paying higher taxes to take care of the illegal immigrants, the HEALTH care system that we will be FORCED to participate in or have our wages garnished. Check out the socialist healthcare system in Canada, France, and the UK. They are abysmal failures!!! Yet, that is what we will get, and it will be the fault of all you blind and stupid LIBERALS! We will all be screwed. In Canada, France, and the UK, they wait months to be seen by an incompetent doctor! We don't have the problem in America!! YOU GET WHAT YOU PAY FOR!!!!
I could go on and on, but not enough room
LeatherLollipop 12:51:12 AM Feb 08 2008
AlxndrCarl, you, my friend are a blind moron! Reagan was an awesome President and Mitt Romney could have been as well. But you liberals are so blind and so stupid, it is going to destroy this country!
Voting Democratic will get you the following:
1. Amnesty for ILLEGAL aliens. As if we don't have enough taxes to pay, we can now pay for drivers licenses, more babies, medical care, and how in the hell do these people who come here ILLEGALLY get Social Security benefits??? They have not paid in, but are taking out. Those of us who have paid in all our lives won't get to see a dime of it back because ILLEGAL aliens are taking OUR benefits!!
2. Open doors for terrorists. YES, that is what will happen. You liberals don't want to waterboard or torture terrorists!! How stupid is that!! If a terrorist is captured who has just placed a bomb in a heavily populated US city is captured, and this bomb is about to go off shortly and he is not talking, them YES, you are DAMN RIGHT, he needs to b
LeatherLollipop 12:39:46 AM Feb 08 2008
What a load of BS! Hillary or Obama will be the death of America! The BEST candidate left the Presidential race today, Mitt Romney! He was light years ahead of the rest of them. It's too bad the American people have been so dumbed down by listening to the liberal media crap. You people believe everything the media tells you. Obama, no matter what he tells you has Muslim ties. Remember, the Muslims have avowed to destroy America from within! What better way than to have one of their own as our President! This is a very sad day for America. Everyone, please WAKE UP and see the truth. Obama is NOT going to do anything but destroy America. We don't have to let that happen. He is not stupid, therefore he is not going to admit what his real agenda is. He knows if he did, that no one would vote for him. He is playing right into your hands. Don't believe him!! God SAVE America!!!
AlxndrCarl 03:09:15 PM Feb 07 2008
and a budget surplus! All while bettering social and environmental causes, and he actually won his war. Clinton had the State Of The Union "the best it's ever been". Not the best husband though. This is a NO BRAINER people. Clinton proved the Republicans DEAD WRONG! Vote Hillary or Obama, they're both light years ahead of any Republican as far as having a real clue about how things really work. The proof is in the pudding. All else is pure BS.
AlxndrCarl 03:07:20 PM Feb 07 2008
Fact is, only Bill Clinton demonstrated in the real world how to run this country in today's world. Reagan did it all on borrowed money while helping only the rich and powerful who need help by far the least, Bush 1 continued this corrupt, un-American, un-Christian, screw the poor, screw the future Reagan way and in fact increased the debt faster. In fact, after 12 years of Reagan / Bush we were paying 17 percent of the entire budget in INTEREST on the national debt. 17 % people, that's of the bottom line cost of government !!! Talk about a tax increase! Spurious George Bush Jr. of course makes his father and Reagan look like misers. On borrowed money as well. Moral? Competent? Honest? Good American? Get a grip people, this is brain dead obvious to all with a properly working brain. Clinton came in with the DOW Jones I think in the 2000's. After 8 years of Clinton's leadership the DOW was in the 11,000's. He inherited a true recession, unlike Bush 2, and left with the best economy EVER
Nil3l 02:46:36 PM Feb 07 2008
H. CLINTON AND BILL THEY JUST HAD IT EASY ALL THE TIME
THEY ARE THE SAME.TALK, TALK , TALK , TALK
Nil3l 02:36:44 PM Feb 07 2008
I AM VERY SORRY H .CLINTON BUT IA CAN'T PAY FOR HEALTH INS
IF I PAY FOR INSURANCE I WON'T BE ABBLE TO EAT AND ON TOP OF
THAT YOU WANT TO GIVE ME A FIND FOR NOT HAVEN INSURANCE
Scoobydoo3332 11:37:10 AM Feb 07 2008
Something you should all be looking at the seems to be heading our way Hospitals will now be doing Credit report to see if we can pay our hospital bills.If this happens what will people do that cant afford health care.
Scoobydoo3332 11:30:25 AM Feb 07 2008
listen have the have been spent on the war that was our country is hurting wake up and Bin laden he gone use your brains and understand that. It sad to see our country go this way.
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