5 Common Mistakes to Avoid On Your Tax Return
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Are you spending countless hours organizing and preparing your income tax return?
According to the IRS, the average American spends approximately 12 hours preparing a Form 1040 income tax return.
With so much time invested in tax season, the last thing you want to do is make a mistake on your return – especially one that delays your refund.
Fortunately, several of the most common mistakes made on tax returns are pretty simple in nature.
1. Incorrect Social Security Numbers
They must match perfectly with what’s on Social Security cards because the IRS compares tax return information with the Social Security Administration’s database.
2. Misspelled names
All names on returns must also match Social Security cards. Pay special attention to dependents’ last names, as those tend to be misspelled.
3. Filing status errors
There are five filing status options. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.
Choosing the best filing status for your situation is one of the first steps in filing your federal return.
In addition to math errors, taxpayers often miscalculate amounts related to their taxable income, withholding, and estimated tax payments, the Earned Income Tax Credit, the Child and Dependent Care Credit, the standard deduction for age 65 and older or blind, taxable interest, and taxable amounts of Social Security benefits.
5. Incorrect bank account numbers for direct deposit or payments
Double-check the routing and account numbers for your financial institution so that you either receive your refund in a timely fashion or pay your balance on time (thus avoiding penalties and interest).
Tip: Prepare your return when you have the fewest distractions.
If you’re interrupted, stop and come back to your return later, or even the next day. You don’t have to do your taxes in one sitting.
How much time do you spend preparing for your income tax return?
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