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Avoid tax filing errors that could cost you

Did you know that the average person spends approximately 12 hours preparing their tax return? Have you started gathering all your information to prepare your 2018 return? Remember, if you spend all that time preparing your return, the last thing you want to do is mess up because you’re in a hurry. Mistakes, however simple, can delay your refund. Below are some common mistakes made on tax returns and what you can do to avoid them.

Get Organized: If you don’t have your tax information yet, you better start now. Missing information can have the potential to cost you unnecessary funds.

Incorrect Social Security number or incorrect identification: The SS number must match what is on your Social Security card because the IRS checks all returns against the Social Security Administration’s database. Plus, it’s easy to focus on the numbers you forget to sign your return or even enter other necessary information. Even having the wrong name can be a problem. These problems often occur after marriage or divorce, especially if you haven’t reported it to Social Security.

Filing Status Errors: There are five filing status options (single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent). used to determine your filing requirements (standard deduction, eligibility for credits, deductions, and Choosing the best filing status for you is one of the initial steps in filing your return.

Math Mistakes and Calculation Mistakes: With all those numbers you can enter on your tax forms, it’s easy to make simple math mistakes. If the IRS finds those errors, they can recalculate them for you, but not in your favor. Therefore, you may want to review your calculations before submitting your forms. In addition to potential math errors, there may be calculation errors related to taxable income, withholdings, estimated tax payments, and miscellaneous. tax credits.

Incorrect bank account numbers for direct deposit: It is important to double check your bank routing number and your account number to ensure you receive your refund in a timely manner. Just as important is paying your taxes on time to avoid potential penalties and interest.

Unreported income: Don’t forget to add income from anything other than your place of employment. This includes interest income, dividends from savings, rental income, or funds from a second job. Be sure to add up all of your income statements (W-2, 1099, K-1, and 1098). Remember, the IRS also receives copies of all those forms.

Filing late or even not filing at all: Many of us can get overwhelmed with details and put off filing our returns on time or not filing at all. Sooner or later, the IRS will discover your lateness and you will receive a bill for the interest and penalties for not following the rules. If you can’t meet the April 15 deadline, you can request a six-month extension and avoid these penalties if you pay any taxes owed before the filing deadline.

Start Saving – Whether you owe the IRS or are waiting for a refund, it’s always good to save. Sometimes refunds are delayed, so you can’t hold off on your invoices waiting for your refund. Be sure to set aside a portion of your income now so you’re prepared to pay for any unexpected payments.

Use your return wisely – If you’re expecting a return this year, be sure to use it wisely. Before you spend it, be sure to prioritize your financial needs and put the refund toward that.

My advice to you: make sure you prepare your taxes when you have fewer detours. If you are interrupted or have annoying distractions, stop what you are doing and finish your return later. A little extra time spent on your tax return will help you submit an accurate return. By following these simple tips, you can protect yourself from getting a letter from Uncle Sam telling you that you owe extra money.