Avoid These Common Errors When Filing Taxes
The IRS sees a lot of silly tax errors – here are the ones they warn against.
Given that it seems like the deadline for filing taxes is always fast approaching, the IRS posted a list of common taxpayer errors that could hamper the processing of your taxes, including delaying any refunds that you might be due. Here are a few excerpts directly from the IRS:
Report all taxable income. Be sure to have income documents on hand before starting the tax return. Examples are Forms W-2, 1099-MISC, or 1099-NEC. Underreporting income may lead to penalties and interest.
Get names and Social Security numbers right. Enter each Social Security number (SSN) and individual’s name on a tax return exactly as printed on the Social Security card. Persons generally must list on their individual income tax return the SSN of any person they claim as a dependent. If a dependent or spouse does not have and is not eligible to get a SSN, list the Individual Tax Identification Number (TIN) instead of a SSN.
Correctly answer the virtual currency question. Form 1040 asks whether at any time during the year, a person received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency. If a taxpayer’s only transactions involving virtual currency during the year were virtual currency purchases, they are not required to answer “yes” to the question.
Mail paper returns to the right address. Paper filers should check the right address for where to file on IRS.gov or on form instructions to avoid processing delays. Taxpayers and tax professionals are encouraged to file electronically if possible.
Use the right routing and account numbers. Requesting direct deposit of a federal refund into one, two, or even three accounts is convenient and allows the taxpayer access to his or her money faster. Ensure the financial institution routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account. Taxpayers can also use their refund to purchase U.S. Savings Bonds.
Sign and date the return. If filing a joint return, both spouses must sign and date the return. E-filers can sign using a self-selected personal identification number (PIN).
Keep a copy. When ready to file, taxpayers should make a copy of their signed return and all schedules for their records.