As the old saying goes, “everyone makes mistakes.” Unfortunately making mistakes on your tax return can result in unnecessary fees or penalties, and may even lead to a painful IRS audit. Avoid the 13 common errors before to avoid potential problems before they develop.
1. Math Errors
Always double and triple check the math on your tax return. The IRS will correct some simple math errors, but you should ensure everything is accurate before mailing your return.
2. Sign & Date
This may seem obvious, but make sure you sign and date at all the appropriate places on both your federal and state tax returns.
3. Attach Forms
Do not forget to attach all copy Bs of your W-2 or any 1099 forms showing federal income tax withheld.
4. Social Security Number
Always make sure you have the correct social security number listed on all appropriate documents. The IRS will have no way to identify you if you put down the wrong number.
5. Check Subject
If you owe money to the government and are paying with a check, make sure that you include your social security number, tax form, and the tax year in the subject field.
6. Check Amount
Always verify that the amount on your check to the government matches the amount listed on your tax return. Even if your are a few dollars off the IRS will still come after you for what they are owed.
7. List all Dependents
Check to make sure that you list all dependents on your return, including qualifying children, elderly parents, etc.
8. Overpaid Social Security
If you worked for more than just one employer you may be able to claim an additional credit for overpaid social security taxes.
9. Head of Household
If you are single and have dependents living with you then be sure to see if you qualify for lower tax rates available to those who file as a head of household.
10. Joint or Separately
If you are married then you should check to see if you would benefit most from filing a joint return or separate returns.
11. Form 8606
If you make any contributions to an IRA account then you should till out Form 8606 “Nondeductible IRA Contributions” even if you do not claim any deductions for your contributions.
12. Save Copies
You should always save copies of all documents that you send to the federal or state government. You never know when you are going to need proof that you filed your returns.
13. File on Time
Almost every single American taxpayer knows that April 15th is the deadline to file your income tax returns, so there is no excuse to be late!