Month: July 2017

Common errors made by people when filing their tax returns

Many people commit avoidable tax flaws when they are filling their tax returns. These mistakes can lead to unnecessary delays when you are processing your returns or even affect the tax audit process. Explained below are the common errors which should be avoided when filing your tax returns. These mistakes can easily be avoided by double checking your completed return forms before you submit them.

Name errors

Your names should be entered or written correctly. Your spouse’s name should also be entered correctly if you are married. The name used should match the one used on the social security card. You are advised to contact the social security administrators whenever you happen to change your name(s).

Using a wrong social security number

All the security numbers used, be it for dependents, spouse, children or self should be accurate. This is one of the most committed errors, and it should, therefore, be double checked.

Multiple or incorrect filing statuses

At any given time, your returns should be filed under single filing status. The online software used in preparing tax is designed in such way that it cannot allow multiple filing statuses. It is, therefore, necessary for the individuals filing their returns on paper to ensure that they have one status at any given time.

Signing all the required areas

Any tax return is considered to be valid once it is signed by the relevant parties. Spouses should sign any joint return. Failure to sign the required documents might lead delays or rejection of returns.

Account and routing numbers

Directing funds directly from the IRS is preferred by many taxpayers when they are claiming their funds. Every person is expected to provide accurate bank and routing numbers when claiming his or her refunds. Again, it is paramount to ensure that all the important details are reviewed to correct errors.

Math errors

These are the common mathematical flaws which occur when someone is computing the tax amount manually. This can be avoided by, counter checking the math, using the current versions of tax tables and making the necessary corrections.

 

Claiming deductions and credits

The regulations related to IRS deductions and credits are always changing year after year. It is therefore important to ensure that you are qualified for some such as the income credit. This is a special credit which is calculated using the gross income of an individual. You should only claim deductions and credits which are qualified for to avoid delays whenever you are processing your returns.

 

 

 

Common mistakes that need to avoided in forex trade

Forex trading is among the most profitable businesses. You can easily make a lot of money by doing it right. However, many people have made huge losses in this market. Outlined below are some of the potential mistakes you should avoid in the forex market.

Taking a drive

This will involve using a demo account especially if you are a beginner. This account will make you understand how the real currencies work. This is a special account which uses virtual money, but it has all the essential features of a real account. Trial and error method is highly discouraged in forex trading. In fact, it is considered to be both stupid and suicidal. Using a demo account will enable you to understand the ins and outs associated with this market. You do not have to risk your investment capital blindly.

With forex trading, you can make huge returns, but this will not happen overnight. You are supposed to be patient for you to understand how the system works. You should learn how the market operates in the first months. This will make sure that you do not lose your money. Having the right information will help you in making money.

 

Failure to adopt a stop-loss order

You are discouraged from making any order in the market and then leaving it open. By so doing, you can end up losing the entire amount. Instead, you should protect yourself by adding stop-loss instructions to any position which is open. The rate at which you are taking profits should always be identified. The trading system should intervene on the trader’s part.

Being ruled by emotions

People have emotions. You should be careful when trading to ensure that your emotions do not affect your trade. Most people have a tendency of making large risks whenever they seem to be making profits. Trading emotionally can be fatal since you can end up making huge losses in.

 

By copying what other people are doing

New traders are advised to study what the great traders and their mentors are doing. You are discouraged from copying other people’s trading patterns. Instead, you are advised to study other people’s pattern or system and then develop a unique pattern. It is worthy to remember that your mentor’s pattern might not be appropriate for you. One can easily make money by formulating an exit strategy, a setup and an integrated money management system.