Common Tax Return Mistakes
Filing taxes isn’t anyone’s idea of a fun afternoon, and when you’re doing something you’d rather not be doing, it’s easier to make a mistake or overlook important details. Some common tax mistakes include:
1. Messing up the math
Math errors on taxes happen — we’re only human, after all. According to the IRS, they issued over 9.4 million math error notices as of April 2022. Whether missing a number, putting a decimal or comma in the wrong place, or completely messing up a more complicated calculation, going back and fixing math mistakes is frustrating. Math mishaps can also reduce your tax refund or result in a higher bill.
That’s why it’s essential to double-check your math before you submit your taxes, even if you’re confident about it. Or better yet, work with a tax professional to ensure the math is accurate.
Like inaccurate math, misspellings are all too common in the tax world. It can be challenging to spell everything perfectly, especially when the paperwork feels neverending, and you just want to get it over and done with. Remember, a name listed on a tax return should match the name on that person’s Social Security card. So, if you’ve changed your name recently, it’s vital to keep that in mind.
3. Filing too early
Filing early may seem like a win, but sometimes it causes more harm than good. A common tax mistake is filing before receiving all the proper documents. As a result, there may be a hold-up on your tax return, making filing prematurely not worth it.
4. Inaccurate information
All income received and reported on should very carefully be entered. It’s pivotal to double-check this information as you enter it to avoid making a preventable mistake that could come back to haunt you later.
5. Credits and deductions errors
This mistake happens when A.) you don’t take credits or deductions when you have them, or (B.) you take credits or deductions when you don’t. As a result, you’ll have to go back and fix the mistake or risk owing penalties and interest.