Logo
Pattern

Discover published sets by community

Explore tens of thousands of sets crafted by our community.

Common Tax Filing Mistakes

10

Flashcards

0/10

Still learning
StarStarStarStar

Incorrect filing status

StarStarStarStar

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).

StarStarStarStar

Claiming ineligible dependents

StarStarStarStar

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.

StarStarStarStar

Incorrect Social Security Numbers

StarStarStarStar

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.

StarStarStarStar

Mathematical errors

StarStarStarStar

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.

StarStarStarStar

Missed deductions or credits

StarStarStarStar

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.

StarStarStarStar

Filing late or not at all

StarStarStarStar

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.

StarStarStarStar

Using the wrong tax year's information

StarStarStarStar

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.

StarStarStarStar

Not reporting all income

StarStarStarStar

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.

StarStarStarStar

Incorrect bank account information for direct deposit

StarStarStarStar

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.

StarStarStarStar

Not signing the return

StarStarStarStar

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.

Know
0
Still learning
Click to flip
Know
0
Logo

© Hypatia.Tech. 2024 All rights reserved.