The tax deadline is just three weeks away — and while most electronic filers can expect refunds within 21 days, small errors can slow things down. Here are some common tax mistakes to avoid.
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A dependent can be either a qualifying child or a qualifying relative, and comes with tax breaks that can lower how much you owe. But it can be confusing to know whether you can claim certain people as dependents. For example, divorced parents may both try to claim their child, even though two people cannot claim the same dependent. In that case,"there's going to be a problem," says Riley Adams, a certified public accountant who runsBefore claiming a dependent, make sure that they actually qualify for that tax status and that no one else in the household is claiming them.
The language of this question has confused taxpayers in the past, Adams says. But what it's asking is simple: You should check"yes" on the form if you sold cryptocurrencies, exchanged one cryptocurrency for another, used crypto to buy something or received it as payment, says Adams. "If you didn't sell it or exchange it, or if you transfer it to your digital wallet, you don't have to click 'yes' on this," he adds.