I’m kidding.
You pretty much have to.
But here are the common mistakes people make while filing taxes and they range from really basic to pretty complicated, but I hope this serves as a checklist for you to make sure you get the small things right.
Filing taxes can be a complex process, and mistakes can happen. Here are some common mistakes to watch out for when filing your taxes:
1. Math errors
You know how we complain about having to learn math and never needing it later on? Well, we may not need multivariable calculus, but our tendency to make errors sure can follow us. Math errors, such as adding or subtracting incorrectly, can result in incorrect tax calculations. Double-check all calculations or better yet, tax prep software does it automatically.
2. Forgetting to include income
Forgetting to include all of your income, like freelance work or investment income, would mean an incorrect representation of the taxable income, which is problematic. Make sure to include all income sources on your tax return, even if you didn't receive a W-2 or 1099 form.
3. Overlooking deductions and credits
Deductions and credits can help reduce your tax liability, but sometimes people overlook them. Research all possible deductions and credits that apply to you, and don't forget to include them on your tax return.
4. Filing late or not at all
This can result in penalties and interest charges, which add up over time. It's important to file your tax return on time to avoid late filing penalties.
Send out your Tax Forms much in advance to prevent any possibility of missing the deadline.
5. Using incorrect or outdated forms
Double-checking is key. Check the websites for 2022 forms.
According to the IRS, some of the mistakes they witness are:
Filing too early. While taxpayers should not file late, they also should not file prematurely. People who don't wait to file before they receive all the proper tax reporting documents risk making a mistake that may lead to a processing delay.
Missing or inaccurate Social Security numbers (SSN). Each SSN on a tax return should appear exactly as printed on the Social Security card.
Misspelled names. Likewise, a name listed on a tax return should match the name on that person's Social Security card.
Entering information inaccurately. Wages, dividends, bank interest, and other income received and that was reported on an information return should be entered carefully. This includes any information needed to calculate credits and deductions. Using tax software should help prevent math errors, but individuals should always review their tax returns for accuracy.
Figuring credits or deductions. Taxpayers can make mistakes figuring things like their Earned Income Tax Credit, Child and Dependent Care Credit, Child Tax Credit, and Recovery Rebate Credit. The Interactive Tax Assistant can help determine if a taxpayer is eligible for tax credits or deductions. Tax software will calculate these credits and deductions and include any required forms and schedules. Taxpayers should Double check where items appear on the final return before clicking the submit button.
Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit. This is the fastest way for a taxpayer to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax returns.
Unsigned forms. An unsigned tax return isn't valid. In most cases, both spouses must sign a joint return. Taxpayers can avoid this error by filing their returns electronically and digitally signing them before sending them to the IRS.
Once you finish preparing your returns, skim through them and look out for the above problem spots. Nobody is above the law ... nor are they above maths and spelling errors.
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