Five Tax Filing Mistakes Millennials Are Most Likely To Make on 2015 Returns

Millennials still have a lot to learn about life. We are in the early years of our adulthood and we are quickly reaching an age where responsibility is the most important aspect of our lives since there is no one around to scold us for mistakes, send us to our rooms and give us a chance to think about what we did wrong. We are straight up responsible for our own lives, and we have to find a way to make sure we are giving all we’ve got. One way in which many of us fail is in our own tax filing. When it comes to filing our 2015 income tax return, many of us will make a few of the most common mistakes imaginable; and they’re not what you think.

Not claiming moving expenses

With millennials moving every few years and changing jobs every four years on average, you can really rake in the dough on this claim. You can claim moving expenses on your income tax return, and that can mean more money in your pocket rather than in Uncle Sam’s.

Not hiring a pro

If you have a W2 and nothing else, you can do your own taxes. If you are itemizing a few deductions, you can probably do your own taxes. If you have a lot of deductions, business expenses and you plan on filing a Schedule C, you might need to hire a pro. Sure, sites such as TurboTax and H&R Block walk us through our tax filing with no issue but if we don’t know what we are doing, we can’t do it correctly.

Not contributing to retirement to lower tax brackets

Once you reach a point where you enter into a higher tax bracket, it hurts even more to file your income taxes. If you have a refund or extra money every month, contribute to your retirement. The more you give to your retirement account, the lower your tax liability. Why wouldn’t you want to enhance your future and make right now less expensive?

Spending that refund

I cannot tell you the number of times I see on Facebook or other social media that people have already mentally spent their income tax refund before they even have it in their bank account. As someone who pays a big, fat check to the IRS every single year, I might mentally spend a refund, too, if I got one. I don’t, so it’s not a life problem I have. However, why not invest it, pay off debts or save it? It’s far better than buying clothes or shoes or whatever that you won’t even wear anymore come this time next year.

Not using an FSA

If you have kids that go to daycare or health expenses, this is a wonderful way to lower your income. The money that goes into your FSA (Flexible spending account) is taken pre-tax. The best news is that while you probably don’t have up to $2,550 in health related expenses each year, you probably do spend a lot more than that on childcare costs, which means you can use that pre-tax money for that and lower your tax liability.

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