- advertisement -
 
10 tax mistakes to avoid in 2006
Page | 1 | 2 | 3 |

Also especially helpful is Bankrate's guide to homeowners' coverages. Those folks covered by Medicare will also need to get familiar with Part D -- the prescription drug coverage. If you try to understand the ins and outs of this program by logging onto Medicare's web site you may end up increasing your medicinal intake, so try this Bankrate article first.

- advertisement -

Speaking of additional medicinal intake, the eighth mistake is not seeing your accountant early before he or she gets stressed. The closer to April 15 that we get, the busier your accountant gets. And just like anybody that has too much work, some of it doesn't get his full attention, especially when he starts working 12 to 14 hour days. If you visit your accountant and he looks like he's overwhelmed, consider taking an extension of time to file your income tax return so that you both have opportunity to adequately review your taxes. If you don't have an accountant or tax professional, evaluate your situation to determine if you could benefit from professional advice.

As long as we're on the subject of professionals, the ninth mistake is not taking advantage of your attorney, lest someone takes advantage of you. Your attorney should review your wills and other documents to determine that they are still in accordance with your wishes and that they also conform to the impending repeal of the estate tax. If you haven't done your wills and you have children or property, then your attorney should advise you of the risks that you are taking and should get working on these indispensable documents and other estate-planning steps. If you're in business, your attorney should also update your corporate minute books to reflect the business activity and decisions for the year or years since the minutes were last done.

The 10th mistake is to not look to the future. Gas prices are at an all-time high, a family of four's share of the national debt is $129,000, up about $9,000 from last year, and global warming may be causing all these nasty storms. I guess what I mean to say is save for the future of our kids through Section 529 plans and Educations IRAs and think about a hybrid car rather than a gas guzzler. There are some great tax advantages to thinking green and securing the education of our future leaders.

Bankrate experts' advice
Repeating your money errors of the past is a sure way to personal finance wreck and ruin.
Here, Bankrate columnists identify their picks as the worst mistakes you can make when it comes to your finances in the areas of real estate, debt, taxes, bankruptcy and personal finance, along with tips on how to avoid them next year.
Thrifty 60
1. 10 big bankruptcy blunders
2.10 missteps that will plunge you into debt
3. 10 real-estate wreckers
4.10 terrible tax mistakes
5. 10 top money errors
6. 10 miscues when dealing with debt collectors

 

 

Bankrate.com's corrections policy-- Posted: Dec. 20, 2005
 
 
Read more Tax Adviser columns
Page | 1 | 2 | 3 |
 
 RESOURCES
10 missteps that will plunge you into debt
10 real estate debt wreckers
Thrift Sixty: Money mistakes to avoid
 TOP TAX STORIES
June 15 filing deadline for some
Find the tax professional who's right for you
Coming up with tax cash
 



Compare Rates
NATIONAL OVERNIGHT AVERAGES
30 yr fixed mtg 4.45%
48 month new car loan 3.77%
1 yr CD 0.89%
Rates may include points
Mortgage calculator
See your FICO Score Range -- Free
How much money can you save in your 401(k) plan?
Which is better -- a rebate or special dealer financing?
VIEW MORE CALCULATORS
FINANCIAL LITERACY
Rev up your portfolio
with these tips and tricks.
- advertisement -
- advertisement -