The Most Common Tax Mistakes

Protect Yourself From an Audit
You have your no. 2 pencil, a calculator and this year's W-2. Now what?
That's the thought that crosses many self-preparers' minds as they get ready to tackle their taxes. Veteran CPA Steve Duben says it's a tale as old as time. "The truth of the matter is that the law is complex and not easy to understand," Duben said. "The IRS claims that the average tax return self-prepared will take an individual 21 ½ hours to complete. This includes information gathering and understanding and preparing the return."

If you're willing and able to put in the time and effort to prep your own taxes this year, Duben gave MainStreet a list of the most common tax mistakes he's encountered and how to avoid them.

Forgetting to Report All Income
Did you do some freelance work while you were looking for the dream job you finally landed in September? You still need to report that income in your 2009 return.
"Some taxpayers feel that if they did not get a 1099 form then they do not have to report income received," Duben said. "The IRS has a long arm and seems to know what was and was not reported. To avoid this take your time and review all sources of income."

Source: The Most Common Tax Mistakes