Common Mistakes People Make On Their Taxes
As tax day approaches, you make sure all your W-2 forms, deductions, and other paperwork are in order, and you will file the perfect mistake-free return this time. Well, that’s not always the case as minor mistakes can happen, and most of the time, they are fairly simple ones. Filing taxes is not a frequent or a regular task, and like most taxpayers, you could put wrong information on their returns. Moreover, as tax rules change every year, it becomes more cumbersome and challenging to file taxes correctly. So to help you get your returns right and avoid some basic errors that could prove costly, Speedy Tax Preparation & Bookkeeping Service has put together a list of the most common mistakes people make on their taxes.
1. Illegible information of tax return
This is one of the most common errors committed when you submit unclear handwritten tax information. And if the agent accepting your return can’t read it, your tax return might get entered incorrectly.
2. Choosing incorrect filing status
Choosing an incorrect filing status remains a relatively common blunder amongst taxpayers. There are five filing statuses, including single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child or children. Each status has different income tax rates and various standard deductions. So make sure to check only one box!
3. Not claiming exemptions correctly
Tax exemptions enable you to curb your tax bills based on your tax-filing status and the number of dependents. Although there are numerous tax exemptions, you need to make sure to claim the appropriate one.
4. Not listing dependents correctly
Claiming a dependent on your tax return will enable you to save money and lower your tax liability status. So when you begin filing, you must list all dependent names and their taxpayer-identification numbers accurately on the tax return.
5. Putting income on incorrect lines
This is one simple and easily avoidable blunder! You need to be careful when filing your income information to avoid an IRS investigation or, worse, a tax fraud.
6. Incorrectly calculating deductions and credits
There are several credits and deductions available, which can be overwhelming for a taxpayer. Make sure to read the instructions on the form carefully or check with a tax expert as any miscalculation could result in overpaying the IRS.
To avoid these and other mistakes, reach out to the expert at Speedy Tax Preparation & Bookkeeping Service. As a leading tax preparer and bookkeeper in Elizabethtown, North Carolina. With over twenty years of experience in the financial industry, I specialize in individual and personal tax preparation, C-corporation tax return preparation, s-corporation, LLC tax return preparation, bookkeeping, payroll services, and notary services for small/medium businesses and individuals.