9 Alarming Tax Filing Mistakes That Could Result in an IRS Headache
Filing your taxes is an intimidating process, and there are plenty of mistakes you can make that come with big consequences. Here are nine filing errors that can cause you (and the IRS) a lot of heartache, and some help to get your records in order.
1. Incorrect Personal Information
Some of the most frequent errors: Typing in your name, Social Security number or address incorrectly. Any discrepancies in your numbers could result in a hold up when processing your return, and it may even cause more complicated errors to arise. Be sure you double check everything before hitting “enter”!
2. Failing to Report All Income
While it might be easy to want skip over small streams of income, the IRS mandates full disclosure so do make sure not forget all revenues. Which covers things like freelance work and side jobs to interest from bank accounts. Not reporting income is an audit red flag and can lead to fines.
3. Not taking deductions and credits
Tax deductions, credits can cut your bill: Many taxpayers neglect this option or fail to realize that they are eligible for them at all. Research All Available Deductions And CreditsIf Specific Ones Apply To Education Expenses, Medical Costs Or Home Office Use
4. Filing Late
Tax-Deadlines are immensely important Even missing your return by just a few days can earn you significant penalties and late fees. If You Cannot Borrow the Time Opt for an Extension Be sure to still pay your taxes by the original deadline or you will owe penalties!
5. Math Errors
Tax Return Errors— all because of simple math errors! In other instances, if a taxpayer computes total income inaccurately or adds up deductions incorrectly on their tax form – these might be the types of errors capable to trigger an alarm with the IRS. Avoid Mathematical Errors…Make sure to use tax software you trust, or consult a professional.
6. Not Keeping Good Records
If the IRS wants to question your return, bad documentation is a surefire way for trouble. Keep records of your earnings, deductions and other information in an organized manner throughout the year. It will protect you during tax season and an audit.
7. Filing Status Mistakes
It can change your tax rates and credits you may be able to take. Single, Married or Head of House Hold: Pick whichever applies to your current situation. Misjudging your status would either have you overpaying taxes or losing out on the discount opportunities.
8. Overlooking Deadline Changes
Tax laws, as well as deadlines can alter annually and it’s important to stay current. Failure to adapt can result in filing errors or missed opportunities. Familiarize yourself with all deadlines and requirements for the current tax year in order to remain compliant.
9. The Failure to Seek Professional Help When Necessary
Though a significant amount of taxpayers prepare their own returns, more complicated situations may necessitate the use of tax professionals. Tax practitioners can give you great advice and file your return correctly without charging too much, which means that they are in a position to save you from risk of penalties and for being unable to avail any cuts.
Avoid a head ache from the IRS and be aware of these nine common tax filing errors. A comprehensive method to your tax preparations can pay of significantly and help you to have a much easier experience as the year goes by. Go through your tax forms thoroughly, and if you’re in over your head get help. Happy filing!
