13 common mistakes to avoid when filing tax returns
Tax laws are complicated, often leading to several errors when filing returns. These mistakes could cost more money in the form of taxes, interest, and penalties or lead to an audit from the IRS. One must meticulously fill out and proofread their tax return forms to avoid this hassle. Here are 13 of the most common mistakes people make while filing tax returns; the articles also lists ways to avoid these mistakes.
1. Filing too early
While tax returns must never be filed late, filing them too early may not be a good idea either. Prematurely sending in one’s tax returns could lead to missing out on important tax documents, leading to mistakes in computing and processing delays. Since taxes are due by April 15 each year, it is advisable to have all documents ready and filed by the end of March.
2. Mistyping the Social Security Number (SSN)
This may seem like a no-brainer, but it is a common error across many tax returns. The Social Security Number should be mentioned as it appears on the Social Security card.
3. Making typos
Similarly, special attention must also be paid to one’s name and those of one’s dependents. Making typos here may lead to unnecessary delays and legal hassle.
4. Entering incorrect information
Information about one’s wages, dividends, bank interest, and other income received that has already been reported to the IRS must be carefully entered so it aligns with government records. In cases of disputes or complaints, one must contact the business and request a corrected form or call the IRS to initiate a Form W-2 complaint.
5. Failing to enter the information in the correct line
One must always ensure that their entries appear where they are intended to. Making errors could have legal consequences while filing returns.
