Tax filing might be hard sometimes. You might make mistakes when filing. Making mistakes can cost you money. Tax preparation software helps taxpayers from making common tax mistakes. However, just one slip in entering your information could end up costing you.
You need to keep a copy of your return with the proof of filing because you might need it as proof if IRS mistakenly claims that you filed late or not at all.
Common tax mistakes do not cost you cash. It can delay your refund.
Common Tax Filing Mistakes
Here are 5 common tax filing mistakes you should avoid
Number One: Wrong Social Security Number
Sometimes you might enter the wrong social security number on taxes. According to IRS, one of the most common mistakes taxpayers make is writing the wrong social security number or forgetting to put it on the return. Your social security number is crucial because there are so many income statements, transactions, and retirement plan contributions recorded to this number.
This mistake can prevent IRS from giving your credit for the return of tax filing. When you make this mistake, you have to wait until the IRS accepts or rejects your return.
Therefore, always make sure that you have entered the correct numbers and then double-check them.
Number Two: Not Filing On Time Or Fail To Request An Extension
According to the IRS, 20 percent of taxpayers file their income tax late or sometimes forget the due date. Failure to pay tax before the deadline will, the IRS will charge you interest.
If you want to file your tax late you need to request an extension before the deadline, which gives to extra 6 months to file. However, you should always try to file taxes on time.
Number Three: Making Math Mistakes And Not Using Tax Software
The first thing the IRS checks on tax returns is math. Most people make math errors while filing their returns manually. You might be one of them if you are not using tax software. One advantage of using tax software is that you don’t have to do the math by yourself.
If you prefer to file your tax manually, you need to double-check it. Even if you make a small mistake, you have to face IRS penalties. We recommend you use tax filing software because it’s cheap and helps you to avoid common math mistakes.
With the help of tax software, you can reduce tax filing stress.
Number Four: Paper Filing Errors
Some of the most common mistakes that people make are when they paper file their tax returns. You might make the following mistakes when you paper files your tax return:
- You might forget to sign or date of return
- You might send your tax return to the wrong IRS office
- You might forget to put enough postage on the envelope
- You might forget to attach important forms
- You might arrange the tax form in the wrong order
These are the common mistakes you might make when you paper file your tax. However, you can avoid these mistakes with the help of e-filing your return using tax software.
With the help of TurboTax, you can reduce your tax filing stress, because it will fill out all the tax forms correctly.
Number Five: Fail To Sign Tax Return
If you are filing taxes with your family members, every one of you needs to sign the return tax. Failing to sign your tax return can hold you up from return for weeks or more days. Once you send the document without your signature, the IRS will send it back to you for signature, and you can face a penalty for filing your return late.
You can avoid this mistake if you e-file and return it digitally before submitting it to the IS.
The Bottom Line
Do yourself and IRS the favor by double-checking for the errors while filing taxes. Some of the common mistakes mentioned in this article are easy to avoid if you use tax preparation software like TurboTax. However, the best tax software sometimes won’t point out some common errors. Therefore, always make sure that you have double-checked your return before filing. With this simple step, you can avoid delayed refunds or rejected returns.
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