You tend to rush through your tax return when you see that the tax-filing deadline is coming closer. This can result in mistakes on your tax form which can slow down the processing of your return, cause a delay in your tax refunds or even result in an IRS audit. Don’t rush through your tax return and review it properly before submitting it so that you can avoid these problems.
Here are some common mistakes you should never make on your tax return:
Wrong or Misspelled Names
It’s common to misspell the names of your spouse or dependents on your tax form. Make sure that the names on the tax return match the names on their Social Security cards. Otherwise, it will result in conflict with the IRS information.
Filing Status Errors
You have to choose from five filing statuses- Single, Married Filing Separately, Married Filing Jointly, Head of Household and Qualifying Widow(er) With Dependent Child. Select the one that best suits you as each filing status will have different tax implication.
Incorrect or Missing Social Security Numbers
Sometimes you forget to enter a Social Security number that is important to claim some tax credits. Recalling your dependents’ Social Security number from memory can result in mistakes. After entering the number, make sure you double-check it with the actual Social Security card.
Inaccurate Math Calculations
It’s common to make miscalculations or computation errors on your tax form. These mistakes can affect your tax refund or result in you owning more than you have should. Use tax-preparation software and double-check your math entries.
Not Figuring Deductions or Tax Credits Accurately
Figuring out deductions or tax credits is difficult. Sometimes, it appears that a deduction is appropriate but you are not actually eligible for that deduction. It’s important to remain up-to-date with the tax changes that happen every year. Read the form carefully or check with a tax professional if you have any confusion about a deduction or credit.
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Wrong Bank Account Numbers
You can get your refund directly deposited into your bank account. But, make sure you enter your bank account and routing numbers properly. Otherwise, your refund can be deposited in the wrong account or sent back to the IRS and you will not be able to receive your refund.
Not Signing the Tax Form
Sometimes, in the hurry to submit the return, you forget to sign your tax return and that makes the tax return invalid. It’s important to date and sign your return for it to be considered as filed timely. If you are filing it electronically, you should sign the return using a PIN. And if it is a joint filing, both you and your spouse should sign the return.
Not Submitting All the Required Forms
If you are making any additional income, you should include it on your return. Submit all the required forms that show the details of your extra earnings. Forgetting to submit these forms will result in penalties or audits.
Missing the Deadline
Don’t wait for the last minute to file your return. As soon as you have all the required documents and forms with you, you can file your return. You can ask for an extension in case you are not able to submit the return by the deadline. But, make sure you file by your extension date to avoid late-filing charges or non-filing penalties.
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Plan ahead, slow down and check your work to file a complete and correct tax return on time!