Avoid these common and avoidable tax errors and keep Uncle Sam off your back.
Did you know that small and avoidable tax errors are one of the main reasons for the IRS to audit an individual? No one is perfect, but you need to be as precise as possible whenever you file your return. The government isn’t very forgiving if you make a mistake or two on your taxes. In the best-case scenario, the IRS may delay your refund. However, you could also end up with a massive bill in the mail. This year, be on the lookout for these common tax blunders:
Data Entry Mistakes
The most time-consuming part of filling out tax returns is manually inputting your figures. After a few hours of crunching numbers, nines may turn into sixes if you’re not careful. Sure, to err is human, but the IRS doesn’t accept anything but perfection.
After you finish filling out every form, review your work. Go over every number and make sure you didn’t make a small data entry mistake. Leaving off a zero or putting a comma in the wrong place could end up costing you in the end.
Overlooking Your Side Hustle
By law, you must claim all forms of income on your tax return. Of course, you won’t forget to report your full-time job, but what about that eBay store you run on the side? All side jobs or additional sources of income are taxable—even those bingo winnings. Failing to report this extra money may land you in hot water with the government. Remember, if you earned it, the IRS wants to know.
Claiming the Wrong Deductions
Deductions are the best thing about tax season. Finding a few ways to reduce your tax bill will spare you a few headaches. However, the IRS will go over your deductions with a fine-tooth comb, and you should do the same.
Make sure you qualify for any deduction you take. Updated tax laws reduce the number of itemized deductions individuals can claim. Although the government claims the new tax code is “simpler,” it’s still possible to make an error when deducting once-popular write-offs. You could even accidentally enter the same deduction twice, or enter something on the wrong line!
Forgetting to Sign on the Dotted Line
Did you sign your tax return? If you can’t remember with 100-percent certainty if you added your John Hancock on the dotted line, take another look. Unsigned tax returns slow down processing times. The IRS will not accept your taxes without a valid signature, and you’ll find yourself waiting a bit longer for that refund.
Never Make Another Tax Filling Mistake
You know the old saying—April mistakes bring May audits. Well, maybe that’s not exactly how it goes, but it is true. Keeping Uncle Sam happy during tax season should be at the top of your priority list. The cleaner, more accurate your return is, the less likely you are to get an “official” letter from the IRS in the mail.
Incompass Tax, Estate & Business Solutions can help you file your taxes without any careless boo-boos. We’ll also review your paperwork to make sure you don’t overpay the IRS either. It’s a win-win situation! With over 29 years of experience, you can rest assured your return is in competent hands with our experts. Connect with us online to have a professional review your return for any hidden tax errors.