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David M Daggett CPA

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David M. Daggett CPA - Common Mistakes Made On Tax Returns

As a tax professional and accountant for more than 30 years, David M. Daggett, CPA is in a good position to know the various mistakes taxpayers make when filing their returns. Other than the common “make sure to sign and date where necessary” and adding a reference number if the form is downloaded, there are other areas that taxpayers need to be keen about.

Employment benefits

One of the most common mistakes is forgetting to include employment benefits when filing the returns. Things like medical insurance and company cars can seem apparent, but many people forget to add them. Even things like gym membership are tax benefits that should be included.

Pension contribution

Just like employment benefits, pension contributions are among the commonly omitted items on tax returns. Some people forget while others put the incorrect amount. In many cases, pension contributions are made on a net basis to the pension provider. Make sure you understand the figures involved so you know which to indicate on the tax form.

Interest and dividends

Many taxpayers fail to include dividends and interest from shareholdings and minor deposits. The income tax return has to include all sources of income so your tax obligation can be accurately determined. It is worth the trouble to go through each account you may have left dormant in this account.

Foreign income

Make sure to include foreign income on your tax return. It might be small, but in many cases may not increase your tax obligation.

David M. Daggett, CPA has previously worked as a tax manager for one of the world’s largest accounting firms.

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