Common Tax Mistakes to Avoid

For many of us, we look forward to this time of year where we can expect some extra money in our pockets. The sooner we file, the sooner we can receive our tax refund. And you can do so by filing electronically, requesting your refund via direct deposit and more importantly, avoiding common mistakes that may delay your return.

Before filing, be sure to go back and double-check your returns for the following common errors:

Incorrect information. Our personal information can immediately come to mind without thinking. Although it can roll off our tongue easily, sometimes we may key or write the incorrect Social Security number and/or even mismatch names with the corresponding Social Security number.
Filing status. Your filing status determines your tax rate and eligibility for certain deductions. Choosing the wrong filing status could underpay or overpay your taxes–both of which are mistakes with repercussions.
Failing to sign your return. If filing jointly with your spouse, be sure both signatures appear on the return. Otherwise, your documents will be returned, and you may run into the issue of filing late. This can be avoided by filing electronically and signing your return digitally.
Incorrect calculations. The simplest math error can result in a larger or smaller return. If you are preparing your return by hand, be sure to double-check all calculations. And if you’re filing online, review and make sure the numbers you keyed in match your W-2s, 1099s, and other tax documents.
Not reporting all your income. The IRS receives all forms like W-2s and 1099s for all the income you earn; therefore, it’s important that you report all your income. Failure to do so can result in several penalties.
Incorrect deposit information. If you’re requesting a direct deposit from the IRS, it doesn’t hurt to verify these important set of numbers at least twice. Otherwise, this can cause a delay in getting that quick return you were originally hoping for.Failure to file on time or request an extension. This year’s tax filing deadline is April 15, 2019 (April 17, 2019 for residents in Maine or Massachusetts). However, if you need more time, you can file for a six-month extension that gives you up until October 15, 2019. Keep in mind, this is an extension to file, not to pay the taxes that you owe. The penalty for failure to file is much higher than the penalty for not being able to pay owed taxes.Not getting assistance. With so many tax documents and variables, preparing and filing taxes can be a daunting task to manage alone. By working with our team of experts, we can help you stay organized and ensure that you’re not overlooking any tax opportunities.

As the tax deadline approaches, many taxpayers may be rushing to complete their taxes. This can lead mistakes such ones mentioned above. However, these can be easily avoidable as long as you’re carefully examining your returns. Be sure you’ve crossed your t’s and dotted your i’s. 

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Wealth Advisory Newsletter

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