When you’re unsure if the information that you put on your federal tax return is accurate, it can make tax season even more stressful.
The IRS sees errors regularly, and this often causes delays when they process your tax return or send your tax refund. There are many common mistakes taxpayers make when they file their tax returns that cause these delays. There are ways that you can avoid those mistakes and make sure that when you file, you do it right.
Make sure to include all income
A multitude of taxpayers under-report their income. Usually, it’s an innocent oversight, such as forgetting to include retirement income, income from rental property, stocks, 1099 income, or other additional income.
Yes All of your incomes will be reported to IRS
Always keep in mind that your income is reported directly to the IRS, so if you leave out any source of income, it puts you at risk to be audited. Reporting all income when you file your taxes is required for your tax return to be correctly processed and accepted by the IRS.
Choosing the right filing status
Selecting the wrong filing status on your tax return could cause future tax problems. For example, married taxpayers who decide to file single when instead they should have selected Married Filing Separate or Married Filing Joint. Filing the wrong status could raise a red flag with the IRS if a person selects the incorrect filing status repeatedly. Remember – if you are married but living separately, you can claim the status of single.
Know who you can claim
Claiming dependents who are not eligible on a tax return can also send up a red flag with the IRS. You can only dependents if you support the person that is being claimed, and the IRS might even ask you to provide documentation to prove it. Remember to keep any receipts that can be used as proof, because if you are audited and you are not able to provide supporting documentation, the IRS will add penalties and interest to the balance owed or even be deducted from your refund.
Double-check your tax return and check the changes with your prior-year tax
You may write your full name incorrectly when you file your taxes. If you use a nickname, it could cause your tax return to be rejected. In the very worst case, the IRS could even consider it to be identity theft when you file a return with your full legal name in the following tax year.
Some other common mistakes include failing to sign your tax return before you mail it off to the IRS or placing the wrong bank account numbers on your return. All of these things could be avoided by simply double-checking the information provided. These mistakes may seem small and relatively insignificant, but they can cause significant problems with your tax returns for years and years into the future and maybe fee applies to that.
Always be careful of how you file your taxes and be sure to check your return for accuracy before you send it to the IRS. Taking just a few minutes to proofread your work can prevent these mistakes, and will help you have the best tax season possible.