Mistakes Taxpayers Should Avoid When Filing Tax Returns
Most of the common mistakes taxpayers make when filing tax returns are easy to avoid. By carefully reviewing their tax return, taxpayers can save time and effort because they won’t have to make changes to them later. Electronic filing also helps keep mistakes from happening. Tax software does the math, points out common mistakes, and asks for information that is missing. It can also help people get credits and deductions that are worth a lot. If you qualify, you can use IRS Free File to file your tax return electronically for free if you meet the requirements.
Here are some of the mistakes to avoid:
- Filing too early. While taxpayers should not file late, they also should not file prematurely. They should wait to file until they’re certain they’ve received all their tax reporting documents, or they risk making a mistake that may lead to a processing delay.
- Missing or inaccurate Social Security numbers. On a tax return, each SSN should look exactly as printed on the Social Security card.
- Misspelled names. The names of all taxpayers and dependents listed on the return should match the names on their Social Security cards.
- Inaccurate information. Taxpayers should carefully enter their wages, dividends, bank interest, and other income to make sure they report the right amounts. This includes everything a taxpayer needs to know in order to figure out credits and deductions.
- Incorrect filing status. Some taxpayers choose the wrong filing status. Publication 501 has detailed information about filing statuses.
- Math mistakes. Some of the most common mistakes are math mistakes. They range from simple addition and subtraction to more complex calculations. Taxpayers should always check their calculations twice. Better yet, tax prep software will check it automatically.
- Figuring credits or deductions. Taxpayers can make mistakes figuring things like their earned income tax credit, child and dependent care credit, and child tax credit. Tax software will calculate these credits and deductions and include any required forms and schedules.
- Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit. This is the fastest way for them to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax returns.
- Unsigned forms. An unsigned tax return isn’t valid. In most cases, both spouses must sign a joint return. Exceptions may apply to members of the armed forces or other taxpayers who have a valid power of attorney.
- Disreputable tax preparers. Taxpayers should remember they, not the tax preparer, are responsible for the information on their tax return. The IRS has resources to help taxpayers find someone to prepare their tax returns. Some taxpayers may even be able to get free help from IRS-certified volunteers. Certified public accountants, enrolled agents, or other tax professionals can also help taxpayers avoid errors.
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