Ask my lovely CPA, I am NOT a tax expert. But, looking at the most common tax filing mistakes, a lot of these seem like clerical errors rather than complex tax decisions. Read on to save yourself some headaches after tax season.
Inaccurate Personal Information: One of the most frequent errors is entering incorrect personal details. Double-check all Social Security numbers, names, and addresses for accuracy. Even a single-digit error can cause significant delays in processing your return.
Math Mistakes: While tax software has reduced the frequency of calculation errors, it’s still important to review all numbers carefully. Simple addition or subtraction mistakes can lead to incorrect tax calculations and potential audits.
Choosing the Wrong Filing Status: I can see where this could be confusing in years where you divorced, married, or became widowed. Ask an expert if you are confused, because selecting an incorrect filing status can result in paying more taxes than necessary or missing out on valuable credits.
Missing Out on Deductions and Credits: Speaking of, try not to overlook potential deductions and credits you are eligible for. These can include student loan interest, charitable donations, or work-related expenses. Familiarize yourself with available tax benefits to maximize your return.
Filing Before Receiving All Documents: This is a conversation I had with my son recently. He moved after being employed by Home Depot for all of two weeks and is having trouble tracking down that W2. He wanted to file his taxes anyway (he always gets a refund and desperately needs that money for car parts), but I encouraged him to wait until he gets that last W2. Filing prematurely without complete information can lead to amendments and potential audits.
Unsigned Returns: This seems crazy to me, but it happens. Forgetting to sign your tax return is a common oversight. An unsigned return is considered invalid and can delay processing. For joint returns, both spouses must sign.
Incorrect Bank Account Information: The WORST – expecting a nice chunk of change, only to have it floating out there in the ether. Incorrect information account and routing numbers can delay your refund or even send it to the wrong account. And you know that random stranger is not going to give your tax refund back without a fight.
Sure, you are exhausted by the tax filing process but take that extra 10 minutes to check for accuracy. Your future self will be glad you did.
