Question 20
Closing the quiz with a practical, higher-level pitfall: many taxpayers chase large refunds by overwithholding or using aggressive itemizing without records. While a refund can feel like a forced savings plan, overwithholding means you gave the government an interest-free loan during the year. Conversely, claiming itemized deductions without receipts risks audits or denied deductions. Balanced, record-based filing and periodic W-4 reviews are safer and more efficient. This final question asks you to pick a best-practice mindset to avoid common mistakes and keep filing simple and compliant.
Which is a sensible best practice to avoid unnecessary problems when filing?
Did You Also Know...
By Wise Wallet
The Rule of 72 gives a quick estimate of how many years it takes to double money: divide 72 by the annual interest rate.