News

Tax Time! What You Don’t Know Can Hurt You

April 15th is finally upon us and we wanted to see what exactly those newly filing know about one of life’s most certain events—taxes. So, we took to the streets.

Most of the folks Fusion spoke to knew when tax day was, but not much more.

What are the top five biggest tax errors? Sandra Block Senior Associate Editor, Kiplinger’s Personal Finance broke it down:

1) They don’t have to pay someone to do their taxes. There are lots of resources, go to IRS.gov and look under free file and you can file your taxes for free there. H&R block, Turbo Tax and others offer free federal tax filing for people with simple returns. So don’t pay somebody a lot of money to do your taxes.

2) Don’t make some common mistakes: math errors, entering the wrong Social Security number or wrong direct deposit information, which could cause your refund to go somewhere else—and the IRS won’t help you get that money back.

3) If you’re really not ready, file an extension and give yourself six more months to file your taxes.

4) If you had taxes taken out of your paycheck, file a return—even if you didn’t make much money. You could get money back!

5) Paying off student loans? Take advantage of a deduction that allows borrowers to deduct up to $2,500 in interest payments, which could reduce and possibly eliminate taxes owed. Parents payed off those loans? They can claim the deduction, too.

We wondered, why isn’t this stuff taught in schools? According to Block, schools claim they have too much to teach and not enough time.

“I think that if you talk to administrators of high schools and colleges they say we are trying to do so many other things that we don’t have the time or the money to do this. And they also may be thinking that this is a job for the parents,” Block said.

Produced by Geneva Sands, Edited by Pat O’Gara and Geneva Sands

×
×

Stories not to be missed!

WUPPERTAL,GERMANY- APRIL 08: A lion is seen at the  Wuppertal  Zoo on April 8, 2009 in Wuppertal, Germany.  (Photo by Christof Koepsel/Getty Images)

Here's how this lion-killing dentist thing is going to play out

EAST RUTHERFORD, NJ - JULY 10:  Singer/songwriter Taylor Swift performs onstage during The 1989 World Tour Live at MetLife Stadium on July 10, 2015 in East Rutherford, New Jersey.  (Photo by Larry Busacca/Getty Images for TAS)

Taylor Swift’s stage malfunction last night exposed exactly what it means to be a pop star

SAN FRANCISCO, CA - DECEMBER 18:  A protestor holds a black lives matter t-shirt during a "Hands Up, Don't Shoot" demonstration in front of the San Francisco Hall of Justice on December 18, 2014 in San Francisco, California. Dozens of San Francisco public attorneys and activists staged a "Hands Up, Don't Shoot" demonstration to protest the racial disparities in the criminal justice system following the non-indictments of two white police officers who killed unarmed black men in Missouri and New York.  (Photo by Justin Sullivan/Getty Images)

The next time someone says 'all lives matter,' show them these 5 paragraphs