Double Checking your taxes will eliminate Common Tax Filing Mistakes
Tax season is upon us, and the last thing anyone wants to worry about is making a mistake when filing your taxes. Unfortunately, mistakes are all too common for even experienced filers. Eliminating tax filing mistakes, including the most common tax filing mistakes, will make your life easier. Whether you’re an experienced taxpayer or completely new to filing, it’s important to be aware of potential pitfalls so you can avoid them and ensure that your tax return is done correctly. In this blog post, we delve into some of the most common tax mistakes people make when filing their taxes so you can avoid them in the future and get on with more timely activities.
Tax laws can be incredibly complicated and daunting to manage, but it’s surprising how many errors are made from simple oversights. The good news is that filing electronically can help avoid most of these issues. Tax software handles the math for you, flags any common mistakes, and even prompts you if the information is missing. Plus, using it can help taxpayers take advantage of valuable credits and tax deductions that could have gone unnoticed or forgotten. And if you’re still unsure, enlisting the services of tax preparers who know the tax laws and will ask you simple questions to give you peace of mind knowing your taxes have been correctly filed, making tax time a relative breeze.
Here are some of the most common tax filing mistakes to avoid:
Filing Too Early:
Filing too early is one of the most common mistakes when filing your taxes – and it can cost you dearly. Wait until you have all your tax form. Making an educated guess at income, deductions, or credits can backfire, especially when changes throughout the year could significantly alter your returns. If taxpayers file early without collecting all pertinent documents, they may miss out on opportunities to save money on their returns, as well as risk paying penalties to the Internal Revenue Service (IRS) if they’re incorrect. Planning and accurately filling out information can help avoid costly tax return mistakes this tax year.
Misspelled Names:
A misspelled name may seem like a small issue, but it can have big repercussions. Double-check that the information is accurate and properly spelled when filing your taxes. A simple mistake can cause significant delays in processing your return and could even lead to an audit request.
Filing Status Errors:
Filing status is a critical component of filing taxes correctly, but it’s often an area where people make mistakes. Factors such as marital status or the number of dependents you claim can drastically change your return. Ensure that all of your information is up-to-date and accurate to avoid any discrepancies when filing.
Missing or Inaccurate Social Security Numbers (SSN):
Filing taxes is a long and tedious process, so it’s no wonder many people make mistakes. One mistake that often occurs is missing or inaccurate Social Security numbers (SSN) or social security card. It might seem unimportant, but it can cost taxpayers a lot of money and time if they don’t get it right. Also, when filing jointly, ensure that both SSNs are provided on the return, including last year’s SSN.
Incorrect Bank Account or Routing Numbers:
If you’re planning to receive a tax refund, you must provide accurate bank account and routing numbers for your refund. Entering incorrect information can delay the process significantly. Double-check all of your banking information before you submit your return to ensure that you get your refund on time.
If you’re expecting a tax refund and choose to have it deposited directly into your bank account, make sure that you enter the correct account number and routing numbers. Incorrect information can delay the process significantly or even result in the return being rejected by the IRS. Double-check all of your banking information, including the account number, before you submit your return to ensure that you get your refund on time. Direct deposit is the fastest and safest way to get your refund, but if you mess up the bank account number, it could delay your refund.
Entering Information Inaccurately:
When filing taxes, it’s important to take the time to fill out all of the required information accurately and carefully. Errors such as transposing numbers, omitting fields, or entering incorrect data can all lead to errors in your return and potentially costly penalties.
Failure to Sign and Date Your Return:
Once you’ve completed your tax return, make sure you sign and date it. Without your signature, the IRS won’t accept your return. Also, make sure to keep a copy of your return for future reference.
Incorrect Filing Status:
Filing your taxes can be daunting but double-checking your filing status before you hit submit is essential. A common mistake that taxpayers make is selecting the wrong filing status; this error can lead to unexpected tax liabilities or missed deductions. To avoid costly mistakes, it’s best to review the available filing statuses offered by the IRS, research which one fits best with your current circumstances, and double-check your selection to ensure accuracy. Taking the extra time to check can save taxpayers a headache down the road and ensure the correct filing status.
Unsigned Forms:
It’s also important to remember that all forms, including W-2s, 1099s, and other tax documents, must be signed and dated. Unsigned documents can lead to delays in processing your return.
Mixing Up Personal Identifying Information:
One of the most common mistakes when filing taxes is mixing up personal information, such as your name. Double-check your name, Social Security number, and address, including updating your information with the Social Security Administration (SSA), to ensure it matches the IRS records’ information. Failing to do so could cause significant delays in processing your return. Taking the extra time to double-check your name change information can help ensure you get your refund as quickly as possible.
Math Mistakes:
Even the simplest of calculations can lead to errors, which is why it’s important to double-check your math before submitting your return. A simple mistake can prevent your return from being processed or even result in an audit request. To avoid costly errors, use a calculator when necessary and double-check all calculations before filing, or—better yet—use tax preparation software that does the math for you. Seeking professional tax advice can also help ensure accuracy and maximize your deductions.
Figuring Credits or Deductions:
When filing taxes, taxpayers should pay attention to the various credits or deductions they are eligible for. Many people overlook them and miss out on valuable savings. To maximize your refund and reduce your tax liability, research all of the available deductions and credits you qualify for and include them when filing. Utilize tax software or consult a tax professional to ensure you’re not leaving money on the table based on your unique tax situation.
Not Paying Attention to Tax Deadlines:
Taxpayers must pay attention to the deadlines associated with filing their tax return, paying any taxes owed, and requesting an extension. Failure to meet these dates can result in hefty fines and penalties. It’s important to be aware of all relevant deadlines, including the filing deadline for mailing a paper return, so that you can avoid any unnecessary financial burden.
Not Filing an Extension:
If you are unable to file your taxes by the due date and don’t want to incur any penalties, you must request a tax extension from the IRS. This allows you up until October 15th to submit your return without incurring any late fees or interest. Make sure to apply for a tax extension if needed to avoid the maximum penalty.
Conclusion
Filing taxes can be overwhelming, but it’s important that you take the time to make sure your return is accurate and complete. Reviewing the details of your filing status, paying attention to deadlines, double-checking personal information, and being aware of any deductions or credits available to you are all essential steps when it comes to successfully filing your own taxes.
FAQs
What are some of the most common tax filing mistakes people make?
Some common tax filing mistakes include errors in math calculations, forgetting to sign the tax return, filing under the wrong filing status, not reporting all income, and missing tax deductions or credits. It’s important to double-check your tax return for accuracy to avoid these common mistakes.
How can you avoid making mistakes when filing your taxes?
To avoid common tax filing mistakes, make sure to double-check all your information, keep organized records, and use tax software or consult with a tax professional for guidance. Additionally, filing your taxes early can give you ample time to review your return and correct any errors before the deadline.
What should you do if you receive an error notice from the IRS?
If you receive an error notice from the IRS, it’s important to review the notice carefully and understand what corrections or actions are needed. Contact a tax professional or the IRS helpline for guidance on how to address the issue and ensure your tax filing is accurate and compliant.
How can you ensure that your tax preparer doesn’t make any mistakes on your behalf?
To ensure your tax preparer doesn’t make mistakes, provide them with accurate and organized documentation, review your tax return before filing, ask questions about anything you’re unsure of, and choose a reputable tax professional with experience and credentials in tax preparation.
