We are in full swing with tax season now that the January 30th delayed start date has passed. With that mind, many tax filers need to watch out for the most common mistakes made when completing a return.
Gather all of the necessary forms and paperwork
This is one of the most common mistakes as we often hear that an employee or investor forgot to include income from a 1099 form as it was sent after they filed their return. In addition, you should always save a copy of your files. In many instances, you will need to reference prior year tax returns, so it would be in your best interest to have that information readily available and in case of an audit.
Your name and social security number should be correct
Most taxpayers spell their names correctly. However, many don’t include the proper format of their middle name and even transpose their social security numbers by mistake. You should carefully review your tax return several times and ensure that the name and number match your social security card. A mistake can hold up your tax return and possibly your refund.
Provide the correct filing status
Nearly 70,000 taxpayers filed returns as recently as 2009 with incorrect filing statuses. It’s most common to incorrectly file as head of household when you don’t qualify or are currently married and your spouse files jointly. Remember, you need to be unmarried or “considered” unmarried as of the last day of the year and meet other requirements to file as head of household.
Make sure you sign the actual return
Many taxpayers make the wise choice of hiring a CPA or Enrolled Agent to file their tax return and then forget to actually sign it when their accountant has sent them the final forms to sign and transmit to the IRS. E-filing certainly helps reduce this problem, but not all returns can be processed electronically.
Pay on time even if you’re filing an extension
Many taxpayers that file an extension via form 4868 mistakenly think they aren’t obligated to pay taxes for another six months. If you file an extension, that just means you have more time to get your paperwork in order. Your estimated payment is still due on April 15th. If you fail to make payment, you will be subject to penalties and interest charges.
More tax questions? Browse answers or ask 2012 tax questions online. You can also find accountants online here.
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