Tax season is winding down, ending on April 15th when payments and returns are due. While many Americans trust an accountant or tax preparer to take care of everything for them, a lot of us do our own taxes, and that’s when mistakes are likely to be made. But if your return isn’t accurate or complete, you could get stuck with penalties or have your refund delayed, and nobody wants that.
To get your money back in good time and stay in the IRS’s good graces, avoid these common mistakes people make on their taxes.
- Missing or inaccurate data - We all make typos or forget to sign forms from time to time, but your tax return isn’t a place you want those kinds of errors. Double check those Social Security numbers, bank account numbers, make sure names are spelled correctly and that your math is right before signing your return and sending it in.
- Forgetting tax forms - "I see a lot of people tend to forget tax forms," says Ahad Ali, certified public accountant and CEO of Ahad&Co. Some of the most commonly forgotten ones are 1099s, which are used to report different kinds of income, and people with multiple jobs sometimes forget to file multiple W2s.
- Incorrect deductions - There are a lot of tax credits and tax reductions for taxpayers, but taking ones that don’t apply to you could lead to the IRS rejecting your return, or worse … putting you up for an audit. “Try not to exaggerate your expenses and deductions,” Ali encourages, adding that the IRS can detect if there’s an unusually high amount of these.
- Filing late - The deadline is April 15th, and if you miss it and haven’t filed a valid extension, you face failure-to-file penalties. If you are late filing and owe the IRS the penalty, they’ll send a letter or notice to let you know. How much you’re on the hook for depends on your return, as it’s a percentage of unpaid taxes and is calculated based on how late you file and how much you originally owed.
Source: Newsweek