Preparing your tax return is anything but fun, and it’s rarely easy. Play it safe: do not send your return to the IRS, without checking to make sure that you haven’t made one of these all too common errors:
Math Error
This is one of the easiest mistakes to make: adding or subtracting incorrectly on your tax form(s). Don’t rush – being in a hurry to get it in by April 15th can cause mistakes. Be sure to review everything you enter for correctness.
Computation Error
Make sure that you have reported your tax correctly. To accurately compute your tax, you must have computed both your Adjusted Gross Income and Taxable Income directly: be sure that they are right.
Credits and payments are often computed incorrectly, as well, so pay extra attention to your withholding and Estimated Tax Payments, the Earned Income Credit, your child and dependent care credits, and education credits. If any of these are incorrect or you have claimed too much, the IRS will adjust them for you.
Missing and/or Incorrect Social Security Numbers
If you leave your, a spouse’s, or a dependent’s Social Security Number (or other type of Identification Number) blank, the IRS will not accept your return until it has been reported-and they could charge you a penalty for leaving it off. Just as important, make sure that you enter the number exactly as it appears on the Social Security card-a mismatched Social Security Number will delay processing of your return as well.
Selecting the Wrong Filing Status
There are five filing statuses that you can select from on Form 1040: you must choose one that applies to your situation. Most people incorrectly file as Head of Household, when they should really file as Married Filing Separate. If you qualify for more than one filing status—prepare a return with each filing status and use the one that gives you the lowest tax.
Omitting Forms and/or Schedules
If a form or schedule is required to report income and/or expenses, be sure to include it with your return. The IRS will not process your return until all of the needed forms and schedules are turned in, completed. Make sure everything that needs to be sent with your return is included.
Omitting Income
If you file a return that does not match the income records at the IRS, the IRS will adjust your tax for you, and issue a penalty for 20% of the difference. Even if you won’t get a 1009-MISC or W-2, if you know you had income, you must report it. If you don’t have your records, or won’t have them in time for April 15th, file an extension, so that you can file a return when you are sure that you have everything you need for an accurate return.
Incorrect Account Number for Direct Deposit of Your Refund
If you enter an incomplete routing or account number, it will cause you to receive a paper check from the IRS, not a direct deposit into your bank account. If you enter the wrong number and your financial institution accepts the transfer from the IRS, someone else will receive your refund! Make sure that you have entered your account and routing numbers correctly!
Forgetting to Sign and Date Your Return
This may seem simple enough, but people send their return in without signing it! You MUST sign and date your return when you mail it in to the IRS. If you are filing a joint return, both husband and wife need to sign the return.
Filing Late Without an Extension
The IRS wants you to file your return on time—they even grant you a six-month extension if you need it, no questions asked. If you do, make sure you file your return by October 15th-there are no additional extensions.
Reed Humphrey is VP of Marketing and Business Development at easyIRS.com - the easy alternative to irs.gov
Reed has an impressive history of sales and marketing leadership in companies such as BCE Emergis and ADP. He has co-founded or led marketing at four different start-ups, including a tax services firm that grew revenues by 100-fold under his direction.