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Today through a combination of accountants and tax software, it’s easier than ever to get your taxes done.
Yet mistakes can still happen. This can cause a delay in your tax returns and mean that you need to do more work. In extreme cases, the IRS can fine you for some mistakes.
Keep reading to learn about 6 common tax-filing mistakes that you should watch out for next time.
1. Math Errors
Many people claim that they don’t like math. That’s okay, you don’t have to like it. But you do need to make sure your tax form is free of any math errors!
Math miscalculations will give you a correction notice that you need to resolve. In some cases, you may realize you owe more money than you thought.
Using tax software can help minimize the risk of error. Don’t let the IRS find a problem; ensure everything is correct yourself before sending it off.
2. Different or Misspelled Names
Although math and numbers are the most important part of your tax form, words have power as well.
If your name, or the name of your spouse or child, doesn’t match the name on a tax identification number, then you and the IRS have a problem.
This problem affects many newlyweds after changing their name through marriage. Make sure you let the IRS know about your name change so that there’ll be no problems come tax season.
3. Problems With Filing Status
There are five filing status options. Make sure that you’re choosing the right one for your situation. Each one is meant for a certain type of person.
Understand what each of the five options means, and choose the one most beneficial to you this tax season.
4. Missing or Wrong Information
Ensure that you fill everything out and that any lengthy numbers such as your Social Security number are filled out correctly. To help you out, import your return from the previous year.
Sometimes, you can also make problems when writing tax deductions. This can be frustrating, as the money you save could be delayed. Check out this guide to help you with investment property tax deductions.
5. Missing the Deadline
It can be confusing to know when the deadline for taxes is. Usually, it is somewhere around the middle of April. Make sure you don’t ignore this deadline. This year, the IRS pushed the deadline back to July in response to COVID-19.
If you feel that you won’t be able to get everything done on time, file form 4868 before the deadline. You’ll then receive a 6-month extension.
6. Forgetting Your Signature
If you forget to sign or date your tax form, the IRS will not process it. Don’t be in such a hurry to complete it that you forget something so simple.
When filing electronically, you’ll be required to enter a PIN. Most tax software should do this for you.
Keep in mind that if you’re submitting a joint filing, you and your spouse need to sign it.
Avoid These Tax-Filing Mistakes!
Avoiding tax-filing mistakes will ensure that you don’t have to correct tedious errors. It also means the IRS will process everything without a problem. You don’t want to give Uncle Sam anything more than you need to.
Check out some of our other blog posts for more articles on finance and business.