7 Most Common Tax Filing Mistakes
Learn about the common tax filing mistakes we all tend to make. Some innocent errors on your income tax return could cost you both time and money.
When you file your taxes, please make sure the whole process is correct and precise.
Here are the 7 common mistakes people generally make while filing tax:
1. Incorrect Filing Status
What decides your filing status is your marital status, whether you are single or married. If married, are you filing separately or filing jointly? Just remember to mark your status properly in the correct box accordingly. Otherwise you will not be eligible for tax credit claims such as earned income tax credit or the child or dependent care credit, etc.
2. Wrong Address
Make sure you clearly write your name, address and zip code on the return if you are submitting a paper return. You can make the corrections directly on the label. This ensures that any documents relating to your tax will reach the right address.
3. Anonymous Return
Quite often, people just forget to sign the form, which is easy but the last important step. After doing all that hard work, forgetting this could unnecessarily hold up your refund. In case if you owe money, you may even have to pay some penalty and interest on your tax bill.
4. Wrong Financial Information
For any refunds, please supply the correct financial institution account and routing transit numbers. Or else, the refund could get delayed or even sent to the wrong taxpayer. This is a costly mistake while filing tax.
5. Mathematical Errors
Make sure all the calculations are done properly while filming your tax. Go back over your return carefully with the help of a calculator to see if you have added and subtracted all those numbers correctly. It is common to see math errors on the tax forms.
6. Errors in Tax Computing
Tax filers often compute their taxable income incorrectly. They hold back estimated tax payments, earned income tax credit and standard deduction etc; Make sure you use the right column for the tax table based on your filing status.
7. Forgetting to Claim
There are new credits, rebates and deductions every year which you may not be aware of and for which you may qualify. Thousands of tax filers either enter the wrong amount or forget to include the rebate on their return. Don’t forget to go through a checklist of potential benefits.
Keeps the above common tax filing mistakes in mind when you file your return the next time. Just remember that even a small mistake can cause you unnecessary stress, loss of time and yes, your money too.