The Most Common Mistakes People Make on Their Tax Returns
It’s that time of year again! Tax time! You want to make it through this process easily, quickly, with the most money in your pocket and a low audit risk. One of the most important things that you can do is complete this year’s tax return accurately, without errors, so that the IRS can process it without any questions or problems and get your refund back to you ASAP.We have compiled a list of some of the most common mistakes people make on their tax returns each year. Before you submit your taxes this April, read through this list and make sure that you do not catch one or more of these common errors on your return:
● Incorrect information: One of the most common errors year after year is individuals mistakenly typing incorrect information on their return. This is seen most often with incorrect social security numbers or misspelled names (which then do not match social security numbers). Also, be sure that you enter the correct amounts from your W-2 on your return. So, the important take home message is to double (or triple) check all of your identifying information so that this does not cause a delay with processing your return.
● Math errors: Arithmetic errors are probably the most common error each year on tax returns. Math errors will immediately get your return flagged, will cause a delay, and will increase your audit risk. Math errors look like discrepancies to the IRS, so double check each calculation you make. You can also consider using tax return software to minimize mathematical errors.
● Forgotten signature: You must sign and date your tax return for it to be processed. This is true whether you mail your return or file electronically. If you decide to e-file, you must use a PIN number (or a specific piece of information from last year’s return) to verify your identity. If you submit without signing, the IRS will have to send it back, causing delays.
● Omitting income: If you did any work on the side or in a contract role and made more than $600 of annual income, you will receive a 1099-MISC detailing that income. The IRS receives one of these too – so do not make the mistake of excluding this information. This will also flag your return and you will be at an increased risk for an audit.
● Missed deadline: Many people wait until the last minute to file their annual tax return. If you run into problems or delays and you cannot make the April 15th deadline, you will need to file for a six month extension (form 4868) rather than have the IRS consider your return late.
Need help with your taxes?
If you have questions about filing your tax return this year, or would simply like a second set of eyes to ensure that your return is accurate, consider partnering with a tax firm. Success Tax Relief has more than 30 years of experience helping taxpayers just like you on routine annual tax preparation as well as solving more complicated tax issues. Feel free to give us a call at (877) 958-6638 for a free tax consultation.”