When filing your taxes, you must be careful of several errors when filling in your data, which can be avoided by filing electronically. And it is that the tax software does the calculations, marks the most common errors and tells you if you lack information.
Next, we share with you the points in which you should be more careful, to avoid losing refunds or delaying their delivery.
1–File your returns too soon
While taxpayers shouldn’t file their returns past the due date, they shouldn’t file them early either.
And it is that People who rush to file their taxes before receiving all the proper documents risk making a mistake that can lead to a delay in processing.
2–Wrong or missing Social Security Numbers (SSNs)
Each Social Security Number on a tax return must appear exactly as it is printed on the Social Security card. Pay special attention when giving this information.
3–Incorrect names
As above, a name on a tax return must match the name on that person’s Social Security card.
4–Entering incorrect information
Wages, dividends, bank interest, and other income received that was reported on a return must be entered carefully. This includes any information needed to calculate credits and deductions.
Using tax software should help prevent math errors, but you should always check your tax return to verify your data.
5–Errors in the tax marital status
Some taxpayers claim the wrong filing status. The Interactive Tax Assistant (ITA) on IRS.gov can help you choose the correct filing status, especially if more than one applies. Electronic filing software also helps prevent filing status errors.
6–Mathematical errors
Mathematical errors are the most common. They range from simple addition and subtraction to more complex items. Because, you should always check your math calculations. Remember that tax preparation software does this automatically.
7–Errors in the computation of credits or deductions
You can make mistakes when determining your Earned Income Tax Credit, Child and Dependent Care Credit, Child Tax Credit, and Refund Recovery Credit.
The Interactive Tax Assistant can help you determine if you are eligible for tax credits or deductions. The filing software will calculate these credits and deductions and include the required forms and schedules. You should check where the items appear on the final declaration before you hit the submit button.
8–Wrong bank account numbers
If you are owed a refund, you should choose direct deposit. This is the fastest way to get your money. However, be sure to include the correct routing and account numbers on your tax return.
9–Forms without signatures
Remember that an unsigned declaration is not valid. In most cases, both spouses must sign a joint return.
You can avoid this mistake by filing your return electronically and digitally signing it before sending it to the IRS.
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–Tax season: 4 tips to make your return to the IRS without problems and get a refund faster
eldiariony.com
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.