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Common Tax Filing Mistakes
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Incorrect filing status
Taxpayers should choose their filing status based on their marital status and family situation as of December 31 of the tax year. To avoid errors, review the criteria for each filing status such as Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er).
Claiming ineligible dependents
Only claim someone as a dependent if they qualify under IRS rules, which include tests for residency, relationship, age, support, and joint return. To avoid this mistake, ensure any claimed dependents meet all five tests for the tax year.
Incorrect Social Security Numbers
Double-check that all Social Security Numbers (SSNs) on the tax return exactly match the Social Security Administration's records. Incorrect SSNs can cause processing delays. Always verify SSNs against the actual Social Security cards.
Mathematical errors
Use a calculator or tax software to double-check your calculations. Mathematical errors can affect your refund amount or how much you owe. Always review the calculations or consider using professional tax preparation services to avoid errors.
Missed deductions or credits
Keep up-to-date on the available tax deductions and credits. Failing to take advantage of them can increase your tax bill. Research or consult a tax professional to ensure you're claiming all the benefits you're entitled to.
Filing late or not at all
File your tax return by the deadline, even if you can't pay the full amount owed, to avoid failure-to-file penalties. Always be aware of the tax submission deadlines, and if needed, file for an extension ahead of time.
Using the wrong tax year's information
Ensure you're using the correct tax rates, standard deduction amounts, and retirement plan contribution limits for the year you are filing. Check the IRS notices and updates for the relevant tax year to avoid this mistake.
Not reporting all income
Report all taxable income, including wages, salaries, tips, and income from interest, dividends, and freelance work. Ensure all your income documentation, such as W-2 and 1099 forms, is accounted for to avoid the underreporting of income.
Incorrect bank account information for direct deposit
Double-check that your bank account and routing numbers are correct when opting for a direct deposit refund. Entering incorrect information can delay your refund or send it to the wrong account. Verify the numbers with your bank.
Not signing the return
An unsigned tax return is like an unsigned check – it's not valid. Both spouses must sign if filing jointly. Electronically filed returns require a PIN for the signature. Ensure that the return is properly signed and dated to avoid processing delays.
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