After being an IRS Agent for over 10 years and in private practice for over 29 years I have found a consistency in tax preparation errors.
If you need quality income tax preparation call us today.
The same errors happen over and over. The following are tax tips that may help you file your tax return trouble free.
Common tax errors to avoid:
1. Social Security – Incorrect or missing Social Security numbers.
When you enter social security numbers for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards. IRS will kick out an error letter or notice to you if they do not match.
2. Incorrect or misspelling of dependent’s last name.
When entering a dependent’s last name on your tax return, make sure to enter it exactly as it appears on their Social Security card. Once again, IRS computers are exact matches.
3. Filing status errors.
The most common mistakes. Choose the correct filing status for your situation. About 40% of all errors occur with these mistakes.
There are five filing statuses:
1. Single,
2. Married Filing Jointly,
3. Married Filing Separately,
4. Head of Household
5. Qualifying Widow(er) With Dependent Child.
4. Math errors are very common. When preparing paper returns, review all math for accuracy. If you file electronically the software does the math for you!
5. Computation errors. Electronic filing basically eliminates this.
Take your time. Have someone review the tax return. Many taxpayers make mistakes when figuring their taxable income, withholding and estimated tax payments, Earned Income Tax Credit, Standard Deduction for age 65 or over or blind, the taxable amount of Social Security benefits and the Child and Dependent Care Credit.
6. Incorrect bank account numbers for direct deposit. Bad Mistake!!!
Double check your bank routing and account numbers if you are using direct deposit for your refund.
7. Sign and date the return.
An unsigned tax return is like an unsigned check. Also, both spouses must sign a joint return. Both spouses should not only sign but fully review the tax return.
8. Incorrect adjusted gross income.
If you file electronically, you must sign the return electronically using a Personal Identification Number. To verify your identity, the software will prompt you to enter your Adjusted Gross Income from your originally filed 2010 federal income tax return or last year’s PIN if you e-filed. Taxpayers should not use an Adjusted Gross Income amount from an amended return, Form 1040X, or a math-error correction made by IRS.
