Everyone has to file taxes, but unfortunately, unless you’re
a professional accountant, it’s all too easy to make mistakes that could cost
you time and money. Some mistakes are more common than others. As such, we’ve
included a helpful list of some of the most common mistakes and how you can
avoid making them.
Forgetting to Sign the Tax Return
After doing rounds of complicated math and checking (and
double-checking!) countless amounts of paperwork, you’re probably ready to just
stuff your return in an envelope and send it off. Because most people are “just
done” by the time they’ve finished their returns, it’s very common for
individuals to forget to put their John Hancock on them. That means that the
returns get sent back, delaying any refunds and possibly resulting in fines and
fees. You can avoid this mistake by signing first thing, or, even better yet,
by filing your taxes online or with the help of an accountant. When you file
online, you won’t be able to submit your form until all of the required fields,
including the signature line, are filled in and complete.
Missing Out on or Wrongfully Claiming Credits
There are a lot of tax credits and deductions available.
Unfortunately, there is also a lot of confusion about who qualifies for what.
As you can imagine, many people end up accidentally claiming deductions or
credits that don’t apply to them, which could lead to having to repeat the
filing process all over again, or, even worse yet, fraud allegations and
investigations.
Conversely, a lot of people miss out on credits
they are owed, such as the Earned Income Tax Credit and the standard deduction.
The only solutions to avoiding wrongful claims or missing out on credits is to
be extra careful about reading eligibility requirements or to hire a skilled accountant
who knows the tax laws inside and out.
Incorrect Bank Account and Routing Numbers
Taxes are a numbers game, and unfortunately,
making one small numerical error can have a huge and negative impact on your
filing experience. If you happen to enter your bank account or routing numbers
incorrectly, even if they’re just one number off, you could end up having to
re-file, or, even worse yet, having your refund accidentally go to the wrong
person, which could take months to get sorted out, if ever. Don’t let his
happen to you; be vigilant about the numbers you are writing down.
The bottom line is that filing taxes is a
complex process, and even a small mistake could end up costing you big. Your
best bet to avoid stress and hassle is to have a professional handle your taxes
for you.
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