The more money you earn, the greater your tax burden may be. Making a mistake in your submission might result in higher costs and fines. Here is a list of typical tax blunders that might cost you money during filing season. A tax preparation specialist may also be able to assist you in avoiding some of these costly mistakes, so search for the Padgett Advisors page today to get a tax specialist to work on your taxes.!
The most prevalent tax error by far is including incorrect information on the return. While providing erroneous information might be considered fraud, the majority of tax return errors are simply honest mistakes. Still, if you are not careful, these blunders might result in a tax audit and a lot of trouble. It is particularly crucial to check for the most common errors:
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Missing or incorrect social security number.
Unless you are filing on behalf of a corporation, your social security number is your primary tax identification number. If it is erroneously worded, the IRS will normally reject your return and require you to resubmit it. When submitting a combined tax return, be sure your spouse’s number is valid as well.
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Filing status mistakes.
There are five filing statuses to select from: married filing separately, married filing jointly, single filer, head of household, and qualifying widow. Make sure you understand each status and file appropriately. One of the most prevalent blunders is filing as Head of Household when you do not fulfill the IRS’s requirements for that filing status. Your right filing status should be the one you qualified for on December 31st of the tax year.
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Incorrectly spelled names.
The name on your tax return should be precisely as it appears on your social security card. The same is true for your spouse if you are filing jointly. If you frequently use a shorter name, nickname, or alias, be cautious here.
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Inaccurate bank account numbers.
The IRS cannot process your tax return by direct deposit unless you provide an exact bank account number and routing number.
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Data entry mistakes.
When transferring information from your W2s, 1099s, and other tax papers, you must be extremely careful to ensure that the numbers are correct. If the numbers you reported do not match those on file with the IRS, you may get a notice in the mail. These sorts of problems are some of the most prevalent IRS audit triggers.
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Mathematical inaccuracies.
It is relatively simple to make a mathematical error on a tax return. E-filing may generally prevent (or at least reduce) these sorts of mistakes, but you should still double-check all numbers before submitting your return.
A tax advisor can help you avoid these and many more mistakes, saving you a lot of money in the long run. Do not hesitate to schedule an appointment today!
