Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

The 3 Most Common Mistakes in Preparing Your Own Taxes

Tax Preparation: Learn from These Common Mistakes

None of us are perfect and we all make mistakes. Many mistakes are made simply due to insufficient information, or information not easily understood. Here I’ll explain the 3 most common mistakes we see on self-prepared tax returns. They are marital status, business deductions, and kids with jobs.

Marital status:

Your marital status for federal income tax purposes is determined for the entire year, on December 31. You may have been single for 10 months of the year and then married in November, or married for the first 8 months and divorced in August. You are either single, or married, on Dec 31. One can always choose to file ‘married filing separate’, but that is different than ‘single’ – there are different rules that apply for certain things, and state law can affect how married filing separate is treated.

There does exist an exception to be ‘treated’ as unmarried (allowing you to file head of household or single even though legally married), but this is for those who have been separated for at least the last 6 months of the tax year. This exception is not commonly met, and you are free to ignore that part of this information. If you just got married, you cannot be treated as unmarried.

Business deductions:

Finding a place to deduct an expense does not mean it is a qualified business deduction for you. Form Schedule C is where someone would report their business income and expenses before electing to be taxed as a corporation. The form is a standardized form with places for various deductions that apply. Often we see something like ‘utilities’ filled in for someone with a home based business, and they simply enter their entire utility bill into the field. What is required to deduct the appropriate portion of utilities, mortgage interest, or any other part business part personal use takes a bit of extra effort and research. While that can be accomplished by someone with determination, we recommend that you find a professional to prepare your tax return and help educate you about how it is all reported at least once.

It applies to all the fields present for business deductions. There may be a place for you to enter the expense, but it is not a simple plug and play form. One can read the instructions for the Form Schedule C which will identify most items one by one, but be ready for some boring reading!

Kids with jobs:

It is a sore subject for a parent when their young adult child whom is still a dependent filed their tax return very quickly for their refund, but accidently forgot the box that says they are a dependent – thus disallowing the parent(s) from claiming them or their college expenses.  If your child files a return before you file your tax return please double and triple check that they checked the box which indicates they are a dependent of another taxpayer (you).

The way it actually reads on the tax return (the 2017 Form 1040EZ) is ‘If someone can claim you as a dependent, check the applicable box’ and there is a box marked ‘You’. That box must be checked. If it is not checked, they are unable to be claimed as a dependent. It can be corrected, but it takes extra time and money to do so. Additionally, if the person is in college and you are paying for it – only claiming them as a dependent allows you to claim the college expenses on your tax return. If your child mistakenly did not check the box, not only can you not claim them, but you are losing potentially thousands of dollars of education tax credits as well. Due to this, we often advise parents to not let their children file a tax return until the parents return is filed and complete. It is much easier to correct one check box on the child’s return and resend it to the IRS, than have to go through and amend the child’s return which has to be filed on paper and takes the IRS 90+ days to process.

Charles Steinmetz
Senior Tax Professional

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Divorce and Taxes: Filing Status, Alimony, and Dependents

Divorce and Taxes: Filing Status, Alimony, and Dependents Divorce brings significant emotional and financial changes, and one area that’s often overlooked is how it impacts your taxes. From determining your filing status to understanding alimony rules and claiming...

Breaking Down the One Big Beautiful Bill (OBBB): What the 2025 Tax Reform Means for You

On July 1, 2025, the U.S. Senate passed one of the most significant tax reform bills in recent history: the One Big Beautiful Bill (OBBB). With the House expected to approve the final version shortly and a presidential signature likely to follow, this sweeping...

Major life changes and taxes

How Major Life Changes Affect Your Taxes (Hint: You’re Going to Like It) Major life changes and taxes—like getting married, moving, or having a baby—are exciting milestones that often come with significant financial adjustments. But here’s some good news: these events...

What happens if you don’t file on time

Got IRS Penalties? Know the Rules, Pay Nothing If you’ve received a penalty notice from the IRS, don’t rush to pay it. There are ways to reduce or even eliminate IRS penalties if you know how to approach the situation. Whether you’re facing late filing, late payment,...

Want to deduct your dog? Here’s how?

Three Ways to Deduct Your Dog, Cat, or Other Animal Expenses Owning a pet is often an expensive yet rewarding experience, with annual costs for dogs ranging from $1,270 to $2,800. While the love and companionship pets provide are invaluable, the IRS views their...

Claim $1600 Stimulus Check – IRS 2025 Rebate & Eligibility

As millions of Americans continue to grapple with financial challenges post-pandemic, questions surrounding the $1600 stimulus check, IRS 2025 payments, and the Recovery Rebate Credit are trending once again. Whether you missed out on a past stimulus payment or are...

Bookkeeper vs. Accountant: What’s the Difference?

Bookkeeper vs. Accountant: What's the Difference? Managing your business’s finances is essential for long-term success, but understanding the roles of a bookkeeper and an accountant can be confusing. In the debate of Bookkeeper vs. Accountant: What's the Difference?,...

How to Set Up Your IRS Online Account with ID.me

ID.me and the IRS Login System ID.me is a third-party identity verification service that the IRS uses to provide secure access to certain online tools and services. If you need to access your IRS account online, such as to view your tax records, get your transcripts,...

What Is the One Big Beautiful Bill Act? Key Tax Changes for 2025 and Beyond

Big Beautiful Bill Act Changes Your Taxes If you’re a taxpayer, business owner, or financial advisor, the “One Big Beautiful Bill Act” (OBBB) could impact your tax strategy in major ways. Passed by the House of Representatives in May 2025, this sweeping tax reform...

5 Signs Your Business Needs Accounting Help

5 Signs Your Business Needs Accounting Help Running a successful business requires more than a great product or service—you need a solid handle on your finances. However, many small business owners and self-employed professionals find themselves overwhelmed by the...

Request an Appointment Today

4 + 1 =

Call us at

Share This