5 Mistakes You Can Make from Doing Taxes Yourself
Doing your own taxes has many benefits. You can complete them on your own time and don’t have to pay anyone to complete the task, but it can also set you up to make errors that can cost you big time. Tax software programs can be helpful in eliminating some potential errors, but they are only as accurate as the information that you provide. As tax day rolls around, consider 5 of the most common mistakes taxpayers make when preparing their own tax return.
- Math or calculation errors: Even if you are planning to use a tax software program which minimizes math or calculation errors, you still have to input the correct numbers for the software to work for you. If you include an incorrect number or calculation on your return, the IRS may kick it back or it may increase your audit risk. This can also reduce the amount you receive or increase the amount you owe to the Internal Revenue Service (IRS).
- Misspelled or mismatched names: If your name or the name of your spouse and/or dependents is misspelled or incorrect, and does not match what is filed with the social security office, the IRS will slow down processing your return and may even send it back to you. This happens most often with women who have married and changed their name on some items (driver’s license, etc.) but not yet with the social security office.
- Direct deposit mistakes: Be very careful to enter correct bank account information if you are asking the IRS to provide your refund through direct deposit. If you have just one number wrong, your refund could be delayed or lost altogether.
- Omitting a portion of your income: Keeping detailed records of all income you receive over the course of the year can be very helpful when tax time rolls around. You should receive 1099 and W2 Forms for all income that has been reported, but there are instances when this does not happen. The IRS WILL receive all information on your income and if there is a discrepancy, there is an immediate red flag on your return.
- Forgetting to sign the dotted line: Even with most taxpayers completing and submitting their tax returns online, you are still required to give your electronic signature in order to file your taxes. The IRS will not process your return without it. Also, as an added measure of protection, you will also have to provide the PIN you used last year or your adjusted gross income from your previous year’s tax return in order to submit.
Is Doing Your Own Taxes This Year Too Stressful?
If preparing your own taxes causes you stress or raises questions, you may want to consult with a comprehensive tax firm. Success Tax Relief can answer questions, review your completed return and/or complete the entire process for you for one low cost. For more information about the services offered by Success Tax Relief, contact us online, or call 877-825-1179 today.