The Most Common Tax Return Mistakes: How to Avoid Them?

Filing individual tax returns isn’t always easy, sometimes common mistakes can be made and with the help of an accountant or CPA can be avoided. The professionals have the experience and knowledge necessary to ensure that the most common mistakes aren’t made. Still, it’s important for all taxpayers to know what mistakes are easy to make.

In addition to creating financial and legal problems, making a mistake on your tax return can delay your refund and cause a bad time with the IRS. That’s why working with an accountant or tax specialist is the best way to prepare your return on time and in compliance with all laws and requirements. Evans Sternau CPA is one of the most recognized firms in the United States with years of experience in the financial world. They have a team of accountants ready to advise and assist their clients with everything they need.

All business owners should know that after filing a U.S. income tax return they receive a refund from the Internal Revenue Service (IRS). And some people receive a substantial refund. Likewise, everyone should file a return to avoid omission or underpayment penalties from the IRS.

7 Common Tax Return Mistakes

For the 2022 tax year, tax season began on January 23 and ends on April 18, 2023. During this period, all small business near me, citizens and residents authorized to work must file their returns with the IRS. It’s important to note that the tax year begins on October 1 and ends on September 30 of the following year. Therefore, the 2023 tax year began on October 1, 2022 and will end on September 30, 2023.

If you aren’t sure how to perform the process you can make mistakes that can generate serious penalties such as:

  1. Mistakes or omitted Social Security numbers and name (SSN). Each SSN on a tax return must have the same name and number that appears on the Social Security card. A small mistake can cause the entire process to be delayed.
  2. Filing before the due date. You can´t file late, but you can´t file early. In all cases, taxpayers must wait for the exact date to file to avoid errors that delay the entire process.
  3. Forgetting the tax marital status. Some taxpayers and business owners must put their marital status on their tax return. Forgetting or omitting this information modifies the amounts to be taxed despite filing as single or married. It’s always important to be attentive to all the details and to be completely honest in the information you provide.
  4. Entering incorrect information. The most important company data and documentation such as wages, dividends, bank interest and other income must be completed carefully. This includes everything needed to calculate credits and deductions. Enlisting the help of a CPA and using tax software is the best way to prevent mathematical mistakes. Also, before filing the return, it’s essential to review the tax return for accuracy.

  1. Incorrect bank account numbers. It’s always necessary to carefully check the bank account numbers because this is the destination to which the refund money will be sent. A single wrong number can cause an inconvenience for days.
  2. Errors in the computation of credits or deductions. Another very common mistake on tax returns is getting the Earned Income Tax Credit, the Child and Dependent Care Credit, the Child Tax Credit and the Refund Recovery Credit wrong.
  3. Forget about signatures. In many cases, taxpayers forget to sign documents and a return without signatures is invalid. In the case of a married couple, both spouses must sign a joint return. Similarly, there are exceptions that may apply to members of the armed forces or other taxpayers who have a valid power of attorney. Currently, there is the possibility of filing the return electronically and using the digital signature to make the whole process faster and more agile.

Not to be forgotten are the mathematical errors that are also a ghost of the tax return. No one is exempt from getting a math or subtraction wrong and those are the most common tax return mistakes. That’s why it’s always advisable to verify the mathematical calculations with the help of an accountant or a professional with experience in the area. The tax preparation software does this automatically, but the final result must be checked.

How to Avoid Tax Return Mistakes?

Avoiding errors on your tax return is very simple. It’s a legal requirement that must be submitted to the authorities and therefore must be completed with patience and attention.

It’s advisable to do it with time, reviewing the mathematical calculations and all the data requested. Search with time all the necessary signatures and the required information. Also, it’s important to be informed and to know all the dates of the tax season in order not to leave everything to the last minute.

In addition, hiring an accountant or a CPA is a complete solution. Both at Evans Sternau CPA and the rest of the financial firms in the country, there are qualified professionals to make a correct and legal tax return in time and form.

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