When tax time rolls around, you’ll probably be anxious to file your return and claim any refund allotted to you. However, many taxpayers fail to fill out their return accurately, which can lead to a delay in processing. It’s important to double check your return before submitting to make sure all the information provided is correct, and that all areas of the return are filled in as needed. When you file your return this year, be sure to avoid the seven common tax mistakes listed below.
Not Including Your Signature
Similar to other forms you fill out, when you’ve completed them, all you have to do is sign on the dotted line to make it official. Interestingly enough, this is one of the most commonly forgotten lines on a tax return. Electronic filing cuts down on this mistake, because you can’t submit the return unless it’s digitally signed. If you use a paper form, don’t overlook the signature of all parties, either you or you and your spouse if filing jointly.
Incorrect Social Security Number
You probably know your own social security number as well as your birthdate or phone number. However, many taxpayers enter incorrect numbers for their children, relatives, or spouses when filling out their tax return. Always double check the number against the official card to avoid delay.
Choosing the Wrong Status
Determining if you’re married or single is pretty simple. Often, the Head of Household status causes the issue for single filers. The IRS has seen a rise in divorced parents with minor children illegally claiming the dependent, either intentionally or not.
Not Knowing Your Name
The IRS says the incorrect name on tax returns is more common than many people realize. Misspellings and changes in surname (due to marriage, etc.) are typically the reason why a taxpayer’s return wouldn’t match what the IRS has on file.
Credit and Deduction Errors
It’s pretty simple for a taxpayer to claim a deduction that they don’t actually qualify for, or to bypass a credit that they are entitled to. The IRS states that the Earned Income Tax Credit, the Child and Dependent Care Credit and the standard deduction are the most often abused, and the most often neglected. Because the tax code gets more complicated each year, it’s easy to understand why confusion amounts in this area.
Accounting Mistakes
Electronic filing not only reminds you to sign your form. It also helps cut down on mathematical errors. Those who file with pen and paper are 20 times more susceptible to making an error in the numbers. No matter what method you use you should always double check your figures.
Incorrect Bank Account
Like the social security number, many people often submit the wrong bank account when requesting direct deposit of their refund. One wrong number is all it takes to delay your return.
