The idea to postpone the submission of tax declarations by the deadline — April 15 — may seem tempting, but if you postpone everything to the last moment and make a mistake, this delay can be costly in the future, writes USA Today.
One of the most common mistakes you can lose a large refund to owing more in taxes and even encounter inspection by the IRS.
“Taxes are complicated and everyone makes mistakes, says Dean Piron, partner, financial services TaxChat at Ernst & Young. — The base moments can be easily overlooked, and this, unfortunately, leads to delays in processing your income.”
If you are expecting a tax refund, but your main personal information is not true, the IRS may require at least 4 to 6 weeks to notify you by mail that you must answer and correct your mistake. Piron warns that the processing of your tax data, it may take several months or even a year, depending on the severity of the problem.
“Common mistakes can lead to significant delays in the return of any type of payments that you can get on taxes,” says Piron.
Here are seven common mistakes that taxpayers should avoid:
1. A new name or a wrong address
You have changed your name or moved to a new address? If you legally changed your name at the social security Administration, make sure that it is reflected in your Federal tax returns and declarations of the state. The discrepancy may delay the processing of your tax documents. Any correspondence and even your tax refund in the mail can be sent to the wrong address if it is incorrect.
2. Incorrect Bank account numbers
Please check the account numbers on your tax return. Taxpayers who expect a tax refund, should choose direct Deposit — as a rule, this is the fastest way to get money.
3. The information is not of all income
Some people often do not realize that they have received income which is taxable. If you do not specify any income, this can lead to unpaid taxes and interest and penalties. It may not be obvious when you receive a new tax form for example, 1099 or K-1 includes income that must be specified in the individual tax return. It is very important to report your activities using these forms. Usually IRS gets a copy and can determine whether there are any inconsistencies in the records.
4. Incorrect status at the time of filing
If you are legally married for a year or less, do not forget that your status at the time of filing may change — if you’ve filed a tax return yourself, you can now do it together or separately, being already married. There are other filing statuses that you might not have considered, they can give certain tax benefits.
5. Credits or deductions
You can make mistakes when you need to determine which credits or deductions you may qualify with your income. For example, a taxpayer who is 65 years of age or older should claim the correct, higher standard deduction if he does not use the drill, talking to the IRS. Interactive tax assistant to IRS.gov will help you to determine if you are eligible for tax credits or deductions.
6. Mathematical errors
Mathematical errors are one of the most common mistakes people make when filling out tax documents. They range from simple addition and subtraction to more complex calculations. Taxpayers should always double-check their calculations. In this case, can be useful software for tax preparation: there are math calculations are performed automatically.
7. Unsigned forms
An unsigned tax return is invalid. In most cases, both spouses must sign a joint tax documents. Exceptions may apply to military or other taxpayers having a valid power of attorney. You can avoid this error by filing his Declaration in electronic form and signed digitally signed before sending to the IRS.