It can be tempting to rush through your return as Tax Day draws near, but it’s not advisable. Rushing frequently leads to mistakes, and those mistakes can slow down the processing of your tax return, which could delay tax refunds or, worse, cause the Internal Revenue Service (IRS) to give your return a second look.
You surely want your IRS tax return as soon as possible if you anticipate receiving a sizable amount. There are a few strategies to expedite your refund: file your tax return electronically; choose direct deposit over paper checks; and, perhaps most critically, ensure that frequent errors don’t hamper your tax return.
The IRS frequently encounters a variety of mistakes. They advise taxpayers to correct IRS forms before submitting them since they issue a warning sign right away if any mistakes are discovered. Here are the 5 most common tax filing errors that you can avoid:
1. Misspelled names
Check to be sure that the names on the associated Social Security cards match up for you, your spouse, and all of your dependents. You are unlikely to misspell your own name, but it’s startling to discover how many taxpayers misspell the name of a spouse or dependent. Sometimes, names on the SSA (Social Security Administration) may also be misspelled; if you provide the incorrect spelling, the data in the IRS system will clash. Remember to give the name that is on your Social Security card.
You must file your return under the name listed on your Social Security card if you just got married, got divorced, or changed your name legally for any other reason but haven’t updated the SSA with the new name. If there is a discrepancy between the return and the SSA’s records, the return will be rejected.
2. Math Errors
Returns produced without the aid of tax software frequently contain math mistakes. Make sure you’re utilizing the most recent IRS tax tables and triple-check your calculations if you’re preparing your return by hand.
The calculations are taken care of for you if you use tax preparation software. Be sure to enter all data precisely as it appears on your W-2s, 1099s, and other tax documents. The software can handle addition and subtraction, but it won’t be able to tell if you entered the numbers incorrectly, for example, by transposing them.
Because tax software does the math, identifies typical errors, and prompts taxpayers for missing information, filing tax returns electronically eliminates errors. Additionally, it can aid taxpayers in claiming worthwhile credits and deductions.
3. Inaccurate Social Security Numbers (SSN)
Make sure you input the correct Social Security numbers (SSNs) for you, your spouse, and any children or dependents. This is one of the most frequent filing mistakes, according to the IRS, and it’s simple to prevent. Just check the Social Security cards of everyone and key in the number precisely as it appears.
Online tax preparation tools cannot do this step for you because they lack access to the Social Security Administration database. Your electronically submitted return may be denied if your Social Security number is entered incorrectly. If you’re filing your return on paper, make sure to write the numbers clearly and legibly.
4. Figuring credits or deductions
Taxpayers are prone to making errors when calculating benefits like the recovery rebate credit, child and dependent care credits, and earned income tax credits. Even if they don’t typically file, if someone qualifies for a recovery rebate credit and either didn’t get Economic Impact Payments or received less than the full amounts, they must file a 2020 tax return in order to claim the credit. A taxpayer’s eligibility for tax credits or deductions can be ascertained with the help of the Interactive Tax Assistant. These credits and deductions will be calculated by tax preparation software, along with any necessary forms and schedules.
5. Unsigned forms
Most of the time, taxpayers fail to sign the forms since they are in a haste to submit their documents and fulfill the deadlines. While scanning and sending their documents, taxpayers often forget that a tax return report without a signature is absolutely invalid and will not be accepted by the IRS. That entails a delay in your time and starting the report-filling process from scratch.
A tax return that is not signed is invalid. Typically, a combined return requires the signatures of both spouses. Armed services personnel and other taxpayers who possess a legal power of attorney may be exempt from this rule. By filing their returns electronically and digitally signing them before submitting them to the IRS, taxpayers can prevent this blunder.
Final Words
The IRS advises all taxpayers to file electronically and select direct deposit in order to receive their refunds more quickly and prevent paper delays brought on by the pandemic. Online tax preparation, refund direct transfer, and electronic filing are all free services provided by the IRS.
