Common Tax Return Mistakes and How to Avoid Them

Still procrastinating on taxes?  For even the most together taxpayers, filing taxes can be stressful. One little mistake can hold up your return and could even result in fines, fees, and penalties. Here, we’ll explore some of the most common (and costly!) tax return mistakes and what you can do to avoid making them on your return.

Late Filing and Payment Fees

Taxes have a due date- April 15^th. If you file them after that due date, then you immediately start accruing late fees. The same goes for payments that are due to the IRS. If you don’t pay when the payment is due, you can expect to wrack up some pretty heavy costs.  

The good news is that, more often than not, you can avoid late fees. The easiest way, of course, is to avoid making payments and filing taxes late! When that’s not possible, contact the IRS to find out what your options are. If you can show proof that paying or filing on time wasn’t possible, you may be granted an extension. The IRS is usually more than willing to work with those who are trying to pay- even if they have to pay a little late.

Forgetting an Account

Many people have several different types of bank accounts, and it’s their job to report all of them to the IRS. To keep from forgetting all of your accounts, keep a detailed list of the accounts and their amounts. If it’s too late for that and you’ve already skipped over an account on accident, don’t panic.

You can file an amended tax return or simply send the correct information to the IRS with a quick note of explanation, Sometimes, the IRS may impose a small fine, but usually it will just be glad to have the correct information and will add it to your file. 

Not Paying in Full

Finally, not paying taxes in full, known as underpayment, comes with some pretty serious penalties of its own. To avoid these penalties and potential legal action if the situation is really bad, make sure you honestly and accurately file your returns each year and that you pay what is due when it’s due.

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