According to the Internal Revenue Service (IRS), you have until April 18 to file your taxes. As the deadline gets closer, you might be tempted to rush through the filing process. Rushing will most likely result in mistakes that delay returns or prompt the IRS to audit you.
Here are the six common mistakes in a tax filing that you are likely to make and how to dodge them.
1. Keying in the Wrong Information
If you are not extra careful, you could submit incorrect information. This could be the wrong income figures, social security number, or bank account. These errors negatively reflect on your tax return information and may delay the tax refund process.
Avoid this mistake by checking and double-checking the details when filling out the IRS forms. You can get and confirm the details earlier when preparing for tax season.
2. Failing to Claim Tax Deductions or Tax Credits
As you rush to beat the tax filing deadline, you may forget to claim deductions and tax credits. The likely impact is that you will lose your money to the IRS.
One way of avoiding this error is to consult tax credit experts. Experts like Erctoday.com will tell you whether you are eligible for tax credits. They will also walk you through the application process.
3. Math Errors
You are likely to miss a number when transferring figures between schedules. You can also make mistakes in adding or subtracting numbers. These errors will inflate your total tax or reduce the tax refund.
The best way to avoid this mistake is to use tax software when filing your taxes. The software will handle all the calculations for you and correct errors before you submit your IRS forms.
4. Mistakes in Paper Filling
Even after keying in the right information, you may forget to sign your forms. In other cases, you might forget to include all the forms for various types of taxes.
The best way to dodge these blunders is to e-file your return using reliable software. E-filing will eliminate most of the errors that occur when filing manually.
5. Failure to Include Additional Income
All the income you make in a given year has to be taxed, irrespective of how you make it. You will be making a mistake if you fail to report additional income.
If you fail to report all your earnings, the IRS may penalize you. There is no shortcut to avoiding this mistake. You must report every penny you earn when filing your tax returns.
6. Choosing the Wrong Filing Status
Your filing status will determine your tax rate, deductions, and allowances. In some cases, choosing the filing status may confuse you, making you forego the most beneficial one, like being a household head.
To avoid this error, ask around to understand the meaning of each filing status or how it affects your tax amounts. Use the information to select the most suitable tax-filing status for you.
Avoid Mistakes in Tax Filing to Save Time and Money
While it is vital to file your taxes before the deadline, it is paramount to avoid making mistakes in the filing process. Start by avoiding the above mistakes in tax filing. Otherwise, you will risk becoming the target of stern warnings from the IRC.
If you enjoyed reading this article, check out our blog for the more helpful content.
