Common tax mistakes to avoid in 2024
It’s the new year and there is a lot of positive energy in the air, so we’d like to start off by telling you common tax mistakes and how easy it is to avoid these from the very start. 2024 is the year for more and this is how we are going to help you achieve this (and potentially earn some more hard-earned rands.)
1. Missing Deductions:
Don’t overlook eligible deductions (our tax assistants can help you here). Be thorough when reviewing your expenses, including potential deductions for personal education, home office expenses, and charitable contributions. Documenting these correctly can significantly impact your taxable income.
2. Inadequate Recordkeeping:
Proper documentation is crucial for a smooth tax filing process. If you keep organised records of income, receipts, and other relevant documents from the start of the year, you’re saving yourself a big headache. In case of an audit, having thorough documentation can make a significant difference.
3. Neglecting Retirement Contributions:
Contributions to retirement accounts like your RAs can offer both short-term and long-term benefits. Ensure you maximize your contributions to these accounts, taking advantage of potential tax breaks and securing your financial future.
4. Late Filing or Extension Misunderstandings:
Avoid the stress of last-minute filing or misunderstandings about extensions. Plan ahead, file on time, and if necessary, request an extension to prevent penalties and interest. OR, ask one of our very efficient tax assistants to help you at the beginning of tax season, and it will be smooth sailing from there.
5. Underreporting Income:
Accuracy is key when reporting income. Make sure all sources of income, including side jobs or freelance work, are accurately accounted for. Failure to report income can result in penalties and legal consequences… and you do not want that!
Steer clear of these common tax mistakes. Stay informed (by following us on social) and if you are feeling overwhelmed, we have the best solution for you – our team. They have seen it all and they know how to weather any storm. Don’t let your taxes give you headaches in a year of 2024 (more).
P.S Last year we wrote an article on new year’s resolutions for your tax (read more here). This year, we’re setting you up for success!