After doing lots of stuff on your previous tax returns, you should know by now what to do and how to handle the issue with it. The only way to get rid of crazy things on your tax return is to prepare and think ahead of time to resolve issues where you are confused. By doing this, the planning and preparation can come up with better results in the future tax filing.

And since, you have previous tax return information; you can make a thorough review and make some changes to make it more adorable that can help you to pay lesser tax this year. However, mistakes are mistakes, you can't blame anyone and you’re the one responsible on your tax returns.

Here are the 3 big mistakes that you should avoid.

•    Owning a mutual funds – Bear in mind that, every year you pay taxes for the dividends and capital gains the company pay out, and not an exception even if your income from the fund are still invested on it. When you sold a fund last year, just make sure you have the correct cost basis on it. The cost basis I mentioned is the amount of money you invested, plus the amount of income you reinvested to that fund for the entire time you owned it. Here’s a common mistake of some investors, they are just using the capital gain or loss from their original investment which will cause you short on your tax return.

•    Information on your 1099 Form – Make sure you include all the interest and dividends for each account.  Because the IRS will receive the copy of all information on your 1099 Form. Any missing amount is valuable to them, even this is small amount.

•    Computation – You should be careful on calculating your social security income. This can be tricky.

You should do your best for better tax preparation and planning.