Are you sure you are filing your tax returns correctly? You better be. Erroneous tax filing can cost you money or can delay your claim for refund. Dollars & Cents Tax and Accounting Services LLC summarizes some of the common mistakes many taxpayers make in filing their tax returns. Check out if you are doing the same thing.
- Using a wrong name or misspelling your name
You might think, “It’s my name. I don’t have to check it twice to be sure that I put it correctly.” Well, think again! According to the IRS reports, this is the most common mistake taxpayers make. Take note that even a simple typo can justify the IRS to reject your return. For a newly-wed taxpayer, make sure that you have already changed your last name in your return.
- Putting incorrect or missing social security numbers
You may know your security number by heart, but have you memorized the security numbers of your spouse and children? Whether or not you are, always check the numbers by comparing them with the actual social security cards. It is better to be safe than sorry.
- Miscalculation or entering the wrong figures
Bad math is another problem in filing tax returns. This does not only cover miscalculations but also entering the wrong figures. Entering $3,800 instead of $8,300 can get you into serious trouble. You would not want the IRS to go knocking on your door!
- Being unaware of the allowable credits or deductions
When you are not aware of the allowable credits or deductions, two scenarios can happen. You either claim credits or deductions you do not qualify for or you fail to claim credits or deductions that you do qualify for. Either way, they have negative consequences. The former could result in a rejected tax return or an audit, while the latter can result in a loss of refund.
- Forgetting to sign your return
This may seem ludicrously simple but a lot of taxpayers forget to put their signature on their returns. Remember that an unsigned tax return equates to an invalid return. For a joint return, keep in mind that one signature is not sufficient. Both spouses must sign in order to effect its validity.
- Getting your tax return done in urgent haste
You should not file your tax return in the last minute. Do not wait for the deadline to arrive before you start preparing for the requirements. Rushing through your tax return will create confusion and increase chances of multiple errors. You can avoid all the mistakes we mentioned if you set enough time for the preparation of your tax returns.
It pays to consult a tax professional in order to avoid any problems with regard to your tax returns. Choose Dollars & Cents Tax and Accounting Services LLC. Our tax services cater to both individual and business taxpayers. For inquiries, do not hesitate to give us a call at 888-365-2368 or you can visit http://dactaxact.com.