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Consumer Reports: Tax Mistakes To Avoid

PITTSBURGH (KDKA) - No one wants to pay more taxes than necessary or run the risk of an audit. Here are several common mistakes to avoid.

One of the most common errors concerns filing an extension. Your taxes are due on April 15 whether or not you file an extension. The extension gives you time to file your return, but the tax dollars must be paid.

Another big mistake is not filing at all because you can't afford to pay your entire bill on tax day. No matter what you have to file your tax return.

Usually you can set up an installment plan with the Internal Revenue Service and avoid a stiff penalty. But, you're still going to have to pay interest. You can find the forms on IRS.gov by typing "installment" into the search bar.

Another tax mistake is not claiming everything you're allowed.

For instance, the Federal tax credit for energy-efficient upgrades to your home. Those have been extended so if you made improvements that qualify in 2014, be sure to include those.

Here's something regarding your parents you may not know. If you pay more than 50 percent of your parents' living expenses, you may be able to claim them as dependents even if they don't live with you.

When it comes to charitable deductions, don't assume a cancelled check is enough to prove your generosity. For charitable contributions of $250 or more, you're going to need a receipt from the organization showing the amount you donated.

And if you claim business deductions, like meals, of course keep the credit card receipt, but you also should note who attended and why.

Finally, if you do make an error on your tax return, all is not lost. You can always file an amended return to correct the mistake.

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