Wednesday, February 4, 2015

The Most Common Tax Mistakes

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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