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Common Errors When Filing Income Taxes

Nowadays, with the aid of tax preparation software, it is easier to file annual tax returns. Nevertheless, you should take note that with just one mistake in typing in your data when filing on a software it may end up costing you, either in the form of a larger tax bill or a smaller refund. Additionally, even when the mistake, either on your PC or paper forms, did not cost you any money, it could delay the receipt of any refund you’re expecting.

Another crucial factor that you need to remember, is that any changes in your taxes can also make the annual tax-filing exercise even more confusing. For example, in the reporting and filing of requirements prompted by the Affordable Care Act have produced a numerous problems for taxpayers, tax professionals, as well as, the IRS. Whether or not are there are special taxes applied in the present year, there are still plenty of incidents when you may mess up a 1040 form.

Incorrect Math Calculations

Every year during tax season, the top most common mistake that happens on tax returns are bad math. Any errors in arithmetic or in moving figures from one schedule to another will get you an instant correction sign. Be warned, even the most simple math mistakes also can lessen your tax refund or result in you owing more taxes than you thought. Your most important job is to get all the numbers correct since the IRS will be doing a double-check all of the numerical entries against its copies of your tax statements (W-2, 1099s and the like).

Another common math error are computation errors, here taxpayers or their tax pros make mistakes in figuring such tax-return entries as taxable income, withholding and estimated tax payments. Additionally, credits and special deductions also pose problems.

Misspelled Names

One important rule that you need to remember, is that the IRS is not just all about numbers, but words too, especially correct names. If ever the names of a taxpayer, his or her spouse, or even their kids don’t match with the tax identification number that the Social Security Administration will provide it may start different problems with the processing. Usually, this problem is a normal especially for women who are newly married. That is why it is crucial that you should announce to the Social Security Administration as soon as she can when she got married and will be changing surnames.

Additional Income Means Additional Filing Work

If ever you have any additional work or income, for example, as a contractor you will most likely receive a Form 1099-MISC detailing the extra earnings. Never miss on declaring these important details or the IRS will count this against your owed taxes. There are many other tax problems that you will encounter, it is important that you know how to amend them to avoid problems.

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