As they say, there are some of the lessons that are best learned the hard way. But managing your taxes should not be one of those hard lessons.
In case of a mistake you should be ready to face the consequences, one of which could be having your refund from your taxes being delayed. It could also lead to you earning of a smaller refund as well as the extra time and money spent to correct your return or handle an audit by the IRS.
Some of the most common tax preparation mistakes that an individual may commit includes:
a) Wrong social security information
In case of a changed name from the original name used before, the social security office should be contacted for correction. You must ensure that the name you use is correctly entered including the social security number of your spouse, dependants and yours. Any incorrect number used may be for another person.
b) Mathematical mistakes
The utilization of different tax preparation software may be a better alternative to assist you in properly entering totals and amounts accurately. In most cases these software suites actually assist you by asking you questions and making suggestions throughout the process.
c) Wrong form usage
Relevant forms can be selected through the help of software. Despite this, the usage of 1040EZ might not receive as much back compared to the 1040A. There are also some circumstances which demand the usage of more forms.
d) Payment of a service you can acquire for free
You should look for the free IRS VITA program if your net salary is $5100. The AARP also offers free tax planning. Check on the AARP websites where you can get a free service to help you avoid extra spending.
e) Forgetting signing of the documents
If you forget to sign a document it is like handing over an assignment without indicating your name. You should check out the document properly and ensure it is signed appropriately as required by law before sending. This will help you avoid delays and other additional penalties.
f) Not revealing your income
Failure to disclose the incomes might happen in a situation where the number of employers are many or even if the 1099 or W2 is missing. Ensure all the required forms are at your available before you commence the work.
In using the above tax mistake, you will be able to do your work accordingly while trying to minimize the errors that might occur due to these mistakes.
In case of a mistake you should be ready to face the consequences, one of which could be having your refund from your taxes being delayed. It could also lead to you earning of a smaller refund as well as the extra time and money spent to correct your return or handle an audit by the IRS.
Some of the most common tax preparation mistakes that an individual may commit includes:a) Wrong social security information
In case of a changed name from the original name used before, the social security office should be contacted for correction. You must ensure that the name you use is correctly entered including the social security number of your spouse, dependants and yours. Any incorrect number used may be for another person.
b) Mathematical mistakes
The utilization of different tax preparation software may be a better alternative to assist you in properly entering totals and amounts accurately. In most cases these software suites actually assist you by asking you questions and making suggestions throughout the process.
c) Wrong form usage
Relevant forms can be selected through the help of software. Despite this, the usage of 1040EZ might not receive as much back compared to the 1040A. There are also some circumstances which demand the usage of more forms.
d) Payment of a service you can acquire for free
You should look for the free IRS VITA program if your net salary is $5100. The AARP also offers free tax planning. Check on the AARP websites where you can get a free service to help you avoid extra spending.
e) Forgetting signing of the documents
If you forget to sign a document it is like handing over an assignment without indicating your name. You should check out the document properly and ensure it is signed appropriately as required by law before sending. This will help you avoid delays and other additional penalties.
f) Not revealing your income
Failure to disclose the incomes might happen in a situation where the number of employers are many or even if the 1099 or W2 is missing. Ensure all the required forms are at your available before you commence the work.
In using the above tax mistake, you will be able to do your work accordingly while trying to minimize the errors that might occur due to these mistakes.