The Biggest Mistake You’re Making On Your Taxes | Kristen's Cash Tips | NowThis

What’s the biggest mistake that people make on their taxes?

Brooklyn Plans Founder Kristen Euretig, CFP, claims, “Generally people have fairly straight forward tax situation if they’re on a salary, So, if you get a W2 you’re on payroll, and you don’t have property, there’s not really a lot of wiggle room for mistakes. But if you have variable income, freelance income, are self-employed, which is more and more people. And especially more and more young people, as we see more people taking up the gig economy or choosing to do freelance, starting their own projects, or businesses. What we see is a lack of record keeping can really lead to missing out at tax time.”

According to Eiretig, the reason for that is because it’s usually a simple equation — all the money you earn for your business minus all the money you spend on your business. So, it you don’t keep track of all the expenses that went into generating it, like lunches, travel or big projects, and keep a record to provide your accountant, then you’re likely missing out on benefits.

So, make sure you are keeping track of the most minute purchases if you are self-employed, freelance or building a business. It may seem a little arbitrary but it could end up saving you money at tax time.

Connect with NowThis

NowThis is your premier news outlet providing you with all the videos you need to stay up to date on all the latest in trending news. From entertainment to politics, to viral videos and breaking news stories, we’re delivering all you need to know straight to your social feeds. We live where you live.

@nowthisnews