Navigating Common Tax Return Errors: Expert Insights

Key Takeaways

• Track all 1099 forms carefully, especially when receiving pension income (1099-R), Social Security (SSA-1099), or transferring between brokerages, as missing even one form can result in unreported income and tax penalties
• If rolling over a 401(k) as a check distribution, inform your tax preparer it's a rollover so it won't be taxed—the 1099-R issued doesn't mean the distribution is taxable if properly rolled over
• Save home improvement receipts in one dedicated location (like a shoebox) throughout your ownership; these add to your cost basis and can save thousands in capital gains taxes when you sell (roughly $20,000 saved per $100,000 in improvements at 20% capital gains rate)
• If you're 55+ with a high-deductible health plan, maximize HSA contributions for both yourself and your spouse, including the $1,000 catch-up contribution—HSAs offer triple tax benefits (deductible, tax-free growth, tax-free withdrawals)
• File a tax extension if your situation is complex or your preparer is busy; this reduces errors and gives your tax professional time to work thoroughly rather than under deadline pressure, and you still must pay any anticipated tax liability by April 15th