Doing your own taxes can seem like a good idea. You may think you’ll save money on tax preparation fees, and you won’t have to meet with a tax preparer. However, there are common tax return mistakes that are often made by people who file their returns. Some can land you in trouble with the IRS and cost you more money in the long run.
Online filing apps and tax return software help eliminate math errors, but they can’t protect against the tax return mistakes that come from human error or lack of knowledge about the tax code. And they won’t make sure you get all of the deductions you are eligible for.
Before you file, check for these common tax return mistakes. And if you do land in trouble with the IRS, contact Tax Resolution Group in Sarasota, FL.
Mixing up the Numbers
Transposing numbers is an easy mistake to make. Let’s say your W-2 or 1099 shows that you received $9600 income and you enter $6900 on your return. This may appear to the IRS as a tax dodge rather than an honest mistake.
Double-check all your numbers to make sure they are correct. The tax software you use will not catch a mistake like this. The IRS computers will compare your numbers to the ones reported by employers, banks, brokerage firms, etc. At best, a mistake of transposed numbers will slow down your refund. At worst, it could result in an audit or further investigation of your tax return.
Misspelling the Names or Mistyping the SSNs
When entering dependent information, simple mistakes like misspelling a name or entering a Social Security Number incorrectly can be a big problem. If you’re using software for a subsequent year, don’t assume that information transfers in correctly from a previous return. Make sure to double-check all dependent information. The names, ages and SSNs of your children or other dependents are all identifying information that must be correct.
Leaving Off a Social Security Number
A missing Social Security Number can be a big problem that slows down tax return processing and causes problems. It’s easy to forget this important piece of information – especially if you planned to go back and add it in later. You might think that your tax prep software will transfer your Social Security number, but that doesn’t always happen.
Again, make sure you double-check your Social Security Number and that of your spouse and dependents before filing your return. Any missing or incorrect identifying information can trigger a deeper look by the IRS.
Mistakes in Reporting Income or Taking Too Many Deductions
You must carefully keep track of all of your income throughout the year. The IRS will be notified of income you receive, and that includes more than just your W2 wages. If you receive a Form 1099, 1099-MISC or any other income report, you can be sure the IRS received the same information. Report all of your income correctly on your tax return to avoid any issues with the IRS.
Deductions are another potential area for trouble. You might be tempted to click a few extra boxes and make up a few numbers as deductions to bring your tax liability down. DO NOT DO THIS. Tax software will let you do this, but that does not mean you should. A tax preparation professional, like our experts at Tax Resolution Group, can help you determine what tax deductions are eligible to take. Correctly preparing your returns the first time will keep you out of IRS trouble. But if you do get audited or have a problem with your tax return, we can help.
NEED TAX RELIEF?
If you made a mistake on your tax return and end up on the receiving end of an IRS notice, or if you have years of unfiled tax returns, contact Tax Resolution Group today. Tax Resolution Group specializes in fixing tax problems. We offer proactive tax services including tax resolution, tax planning, tax preparation and audit support. We offer in person, virtual service or socially distanced service, and we are ready to help you. Call us for tax help today at 941-413-2799 or Request a Free Consultation.