01/25/2022
Common tax return mistakes that can cost taxpayers
Tax laws are complicated but the most common tax return errors are surprising simple. Many mistakes can be avoided by filing electronically. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions.
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.
•Filing too early. While taxpayers should not file late,they also should not file prematurely. People who don’t wait to filebefore they receive all the proper tax reporting documents risk making amistake that may lead to a processing delay.
•Missing or inaccurate Social Securitynumbers. Each SSN on atax return should appear exactly as printed on the Social Security card.
•Misspelled names.Likewise, a name listed on a tax return should match the name on thatperson's Social Security card.
•Entering information inaccurately. Wages, dividends, bank interest, and other incomereceived and that was reported on an information return should be enteredcarefully. This includes any information needed to calculated credits anddeductions. Using tax software should help prevent math errors, butindividuals should always review their tax return for accuracy.
•Incorrect filing status. Some taxpayers choose the wrong filing status.The Interactive Tax Assistant on IRS.gov can help taxpayerschoose the correct status especially if more than one filing statusapplies. Tax software also helps prevent mistakes with filing status.
•Math mistakes. Matherrors are some of the most common mistakes. They range from simpleaddition and subtraction to more complex calculations. Taxpayers shouldalways double check their math. Better yet, tax prep software does itautomatically.
•Figuring credits or deductions. Taxpayers can make mistakes figuring things liketheir earned income tax credit, child and dependent care credit, child tax credit, and recovery rebate credit. The Interactive Tax Assistant can help determine if a taxpayeris eligible for tax credits or deductions. Tax software will calculatethese credits and deductions and include any required forms and schedules.Taxpayers should Double check where items appear on the final returnbefore clicking the submit button.
•Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit. This is the fastest way for a taxpayer to get their money.However, taxpayers need to make sure they use the correct routing andaccount numbers on their tax return.
•Unsigned forms.An unsigned tax return isn't valid. In most cases, both spouses must signa joint return. Exceptions may apply for members of the armed forces or other taxpayers who have a valid power of attorney. Taxpayers can avoid this error by filing their returnelectronically and digitally signing it before sending it to theIRS.
The IRS urges all taxpayers to file electronically and choose direct deposit to get their refund faster.
