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People Who Have Not Yet Filed A 2021 Tax Return Should File Electronically to Avoid These Problems

October 3, 2022

People Who Have Not Yet Filed A 2021 Tax Return Should File Electronically to Avoid These Problems

The summer is over, and the filing deadline for individuals who requested an extension is rapidly approaching. Everyone who must still file a 2021 tax return should do so immediately.

Do not wait until the deadline to file a complete and accurate return electronically.

The deadline for filing individual income tax returns is October 17^th. Filing electronically helps reduce processing time and correct errors. Errors on a tax return can also result in longer processing times or rejection of the return.

Electronic filing can help taxpayers avoid numerous errors. The tax software performs the calculations, flags common mistakes, and prompts taxpayers for missing data. Additionally, it can assist eligible taxpayers in claiming missed credits and deductions.

Hiring a professional tax preparer, such as an Enrolled Agent, is another way for taxpayers to avoid making mistakes.

Here are some of the most frequent mistakes that taxpayers must avoid:

Incomplete or incorrect Social Security numbers. Each SSN on a tax return must be entered exactly as it appears on the corresponding Social Security card.
Misspelled names. Similarly, the name on an individual’s tax return should match the name on their Social Security card.
Inaccurate information entry on an information return. taxpayers should carefully enter wages, dividends, bank interest, and other income received and reported. This includes any data required for calculating credits and deductions. The taxpayer should always double-check their tax return.
Incorrect filing status. Certain taxpayers select the incorrect filing status.
Math mistakes. Math errors are among the most frequent errors. Errors range from simple addition and subtraction mistakes to more complex ones. Taxpayers should always verify their calculations.
Calculating deductions or credits. Credits such as the earned income tax credit, child and dependent care credit, child tax credit, and recovery rebate credit can be miscalculated by taxpayers.
Inaccurate account numbers. Refund-eligible taxpayers should opt for direct deposit. This is the most suitable method for a taxpayer to receive their money. On their tax return, taxpayers must, use the correct routing and account numbers and double-check before submitting
Unsigned forms. An unsigned tax return isn’t valid. Generally, both spouses must sign a joint tax return. By filing their tax return electronically and digitally signing them before transmitting them to the IRS, taxpayers can avoid this error.