The biggest tax mistake that can cost you dearly is not reporting all the income you receive in cash or through apps like Zelle and Venmo. The Internal Revenue Service (IRS) is using advanced systems and new laws to monitor digital transactions, so hiding this money could lead to hefty fines or audits.
For many Albanian immigrants in the US, the American tax system seems complicated. Mistakes made while filing your taxes at the beginning of each year can deprive you of a refund or create long-term debt. Here are 7 common mistakes to avoid:
1. Ignoring 1099-K invoices from Zelle, Venmo or PayPal
Many Albanians who do side hustles or accept payments for services through apps think that this money is private.
- Warning: The IRS requires payment platforms to report business transfers. If you receive a 1099-K form and do not include it on your tax return, the IRS system will immediately detect the discrepancy.
2. Misuse of “Self-Employed” status (1099 worker)
If you work as a taxi driver (Uber/Lyft), construction worker, or cleaner and get paid with a 1099, you are a self-employed taxpayer. Many people forget that no taxes have been withheld from this money.
- Mistake: Not keeping receipts for expenses (gas, tools, telephone) to deduct the taxable value (write-offs), or not paying taxes every quarter (estimated taxes), which leads to penalties at the end of the year.
3. Wrong choice of filing status (Filing Status)
Your status determines the amount of the standard deduction and the percentage of tax you will pay.
- Warning: Even if you are married, some file as “Single” or “Head of Household” because they think they benefit more. This is tax fraud. Always choose “Married Filing Jointly” or “Married Filing Separately” according to your real situation.
4. Mistakes with Social Security numbers (SSN) and names
A simple letter or number mistake in the names of your children or spouse can cause the IRS to block your return.
- Solution: Names on tax forms should be spelled exactly as they are spelled on your official Social Security card .
5. Failure to declare bank accounts or properties in Albania/Kosovo
If you are a tax resident in the US (you have a Green Card or are a US citizen), the law requires you to declare global income.
- FBAR rule: If you have foreign bank accounts that together exceed $10,000 at any point in the year, you must declare them via FBAR. Intentionally hiding them carries hefty penalties starting at $10,000.
6. Late tax filing without requesting an extension
The deadline for filing taxes in the US is usually April 15th.
- Solution: If you don’t have your documents ready, you can apply for a free tax extension until October 15. But be careful: extending the deadline gives you time to file your papers, but it doesn’t give you extra time to pay if you owe the IRS.
7. Blind trust in uncertified “Tax Agents”
Many immigrants go to people who promise huge refunds by inventing
- Solution: Work only with certified professionals such as a CPA (Certified Public Accountant) or
To make sure you’re filing your taxes safely, tell me:
- Do you receive income primarily through W-2 (salaried employee) or 1099 (business/self-employment) ?
- Do you have children or other dependents living with you?
I can show you what tax credits you can get.