Tips To Avoid Tax Mistakes

Due to the possibility of human errors during tax preparation, the IRS is warning taxpayers about the most common tax mistakes to be avoided. Tax mistakes may be genuinely made in error but can be costly if tax penalties are enforced and if an audit is the result of your mistake.

Here are some of the most common tax mistakes and how to avoid them:

Social Security Number Mistakes

The IRS reports that many tax filings fail to list the taxpayer’s Social Security number and those that do often have a mistake in the number entry. In order to ensure you have the information correct, double-check your own Social Security number as well as the number for all other individuals listed on your tax return.

Names Misspelled

There have been many occurrences of misspelled names, particularly the last names of filers as well as their dependents. Information completed on the tax fomrs should match exactly what is on the Social Security card of the individual.

Mistakes in Filing Status

You need to be certain you have chosen the correct filing status for your return. Whether you are filing Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widower with Depend Child, you need to be sure you have selected and marked the filing status that best describes your tax situation and status.

Don’t Miss Important Tax Information

Because many taxpayers have tax-related information coming from multiple sources, it can be easy to overlook items that have not arrived before you started your taxes such as deductible mortgage income or student loan interest. Keep a folder of all income documentation you are waiting on and a list of those documents so you can keep tabs on what you have and what you are still waiting to receive.

Do the Math – Twice

There have been countless errors in taxpayer income, withholdings, and estimated tax mistakes due to simple math errors. If you are not using a tax software to complete the math calculations for you, make sure you have taken the time to get the information correct.

Correct Your Bank Data

If you anticipate an income tax refund and wish to have funds direct deposited into your bank account, be sure to provide the correct bank information on the forms you file including the right account information and bank routing numbers.

Sign the Forms

After all of the hard work preparing the tax forms, people still forget to sign and date the return. Unless the taxpayer has added their signature, the return is considered by the IRS as being incomplete and invalid. If you are filing jointly with your spouse, both signatures are required on the forms to be filed.

If you feel that completing your tax returns are something that is ‘over your head’, you may want to consider hiring a licensed tax preparation specialist to assist you in your federal and state filings before the deadline. The professionals have insight into tax rules and regulations you may not and can make the process much smoother and much more accurate. Plus many professionals offer assistance and representation during a tax audit for any errors made on your income tax return filing.