6 Tax Terrors and How to Overcome Them

This fear, unfortunately, is too often true, in large part because of the ever-expanding tax code. Tax law publisher CCH Inc. notes that in 1919, it took 400 pages in the company's Standard Federal Tax Reporter to discuss the legislative, administrative and judicial aspects of the tax laws. The 2011 edition covers more than 72,000 pages.

With numbers like that, it's no wonder that the average taxpayer feels overwhelmed. And speaking of numbers, Robert Simon, partner at EisnerLubin in New York, notes that "many people aren't good with numbers. Then once a year they wind up trying to deal with numbers."

The remedy: Don't be afraid to ask for help. Most of us already do. The IRS says around 80 percent of us rely on tax software or tax professionals to get our tax job done.

You have lots of preparer options, from a personal accountant who can fill out your return and help you plan throughout the year to franchise operations that gear up between Jan. 1 and mid-April. If your tax situation is not overly complicated, computer software might be enough to help you file with a bit more confidence. Take a look at your tax needs, then find the tax assistance that best meets them.

Even folks who are brave enough to tackle their taxes on their own often face this fear. Again, it's not an unreasonable one. And once again, those folks in Washington, D.C., feed this fear.

Take, for example, the various tax laws created in response to the recent economic crisis. The first-time homebuyer credit was changed three times in less than two years. Definitions, such as who qualifies as a first-time purchaser, would make Merriam-Webster editors scream. And there are all sorts of limits and demands for various homebuying situations.

The remedy: Accept that tax filing is going to take some homework. Before you start your return, check out the countless publications -- including Bankrate's tax channel and annual tax guide. There you'll find the feature, "seven new tax laws to know," our daily tax tips and, if you've been too afraid to start the process yet, seven ways to get organized for the tax year. By staying on top of tax law changes and filing tips, you'll know exactly where this year's taxes might trip you up.

This is a close relative of fear No. 2. But here, the fear is not of omission, but commission.

This includes things as simple as filing the wrong tax form. It happens. In trying to get through filing as quickly as possible, some folks opt for the easy way out, in this case, the 1040EZ, and end up cheating themselves. Or they choose the incorrect filing status, such as single when they're eligible to file as the more tax-advantageous head of household. Those are just a couple of the many mistakes that filers make every year.

The remedy: Slow down. You still have plenty of time to do it right. Read the instructions. If you're using software, don't skip steps just to finish. Answer all your tax pro's questions. If he or she says to provide more information, then provide it. A little extra work and attention to detail could cut your tax bill or get you a bigger refund.

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