Some people like to get the ball rolling early and get their taxes filed. Others like to wait until the last minute for various reasons. Whatever the reason, if you're waiting to the last minute, you will want to stay calm and avoid making mistakes on your tax return because they can be extremely costly. Here are four common mistakes people tend to make when filing taxes at deadline time:
Mistake #1: Math Miscalculations
This is probably the most frequent mistake made by tax filers at any time of the year, but it is most commonly made when filers are trying to hurry and get their papers turned in at the very last minute. Math miscalculations can include include errors in addition and subtraction to percentages and transpositions when entering numbers. A single error on your form can turn your entire tax refund around and/or have the IRS hounding you later. One way to combat math-related errors is to use online software like FreeFileU, as it will usually catch these errors.
Mistake #2: Entering Incorrect Information (SSN, Names, etc.)
Correct information is imperative when it comes to your tax return. If you fail to enter the proper social security numbers (SSN) for yourself and the rest of your family (spouse and dependents), then your return and anything associated with it are going to be rejected by the IRS. The same is true with name discepancies. Any names need to be spelled just as they are shown on Social Security cards. Otherwise, the tax return could be rejected.
Mistake #3: Direct Deposit Errors
While it won't result in a tax refund error and it won't cause your return to be rejected, if you enter the wrong financial account information in any way and the IRS is unable to direct deposit your refund, someone else could end up with your money. This means it could be a headache trying to get your money back. If you're lucky enough that you don't enter someone else's banking account information, then your tax refund will be cut into a check that will be mailed to the address that you filed with. This means you will have to wait for it to arrive in the mail.
Mistake #4: Failing to Report All of Your Income
Some people try to get by without reporting all of their income because it can result in a bigger tax refund. However, one thing that people don't always realize is that the IRS receives a copy of every single W-2 and 1099 form that you receive. Anything that you receive a copy of, the IRS also receives a copy of. So, if you don't report them on your tax return, there is a good chance that you will hear from the IRS about it.
