Common Mistakes People Make on Their Taxes
Filing a tax return each year should be cut and dry. But, for some, changes in their financial situation can lead to mistakes. Tax returns are not something to take a risk with, which is why it’s always best to work with a CPA or financial advisor each tax season. It never hurts to have an extra set of eyes, and in this case a professional’s, looking at your return and checking for mistakes.
Social Security Numbers
One of the most common mistakes people make on their taxes involves their Social Security number. Either people forget to include their number on the tax return or they reflect it incorrectly. This includes switching numbers inadvertently, omitting a number, or forgetting your spouse’s number when filing jointly.
Wrong Filing Status
It’s imperative that you choose the proper filing status when you file your tax return each year. If you are single, you are supposed to check single, not head of household. Some people make the mistake of selecting more than one filing status on a tax return. You can only select one status, so be sure it is the correct one before you file with the IRS.
Incorrect Bank Account Numbers
Many people select to have their tax refund deposited directly into their bank account. Even though this is a very convenient feature, it can become a big problem if you provide an incorrect bank account number. Having just one digit wrong on your return can lead to the refund being deposited into someone else’s account. No one wants that to happen.
Failure to Report Added Income
It’s not uncommon for people to forget to report additional income on their tax return. Most of the time this is an honest mistake. For example, maybe you worked on a freelance project or as a consultant using 1099 status outside of your regular job. This income must be reported, especially if you signed a 1099 with the employer. Failing to report this income can lead to an audit of your finances.
Unsigned forms are another common mistake people make when filing their tax return each year. You get so worried about completing the rest of the form completely only to forget to add your signature at the bottom. Some people also forget to date the form, which is very important, especially when trying to meet the filing deadline.
Incorrect math is a big problem that the IRS sees on an annual basis. There are quite a few calculations that must be performed on a tax return and incorrect math can change the outcome of the return. Double check your math frequently and always use a calculator when doing your taxes. A simple error could cause an audit or reduce your refund.
Contact the experienced and friendly staff at Tobin & Collins today to discuss your tax return and find out how you can avoid making some of the most common mistakes. We can be reached at 201-487-7744.