Money Talks News - Mistakes on tax returns can cost you time and money. Therefore, it literally pays to keep them to a minimum.
Messing up at tax time can wreck your refund, cost you a penalty and possibly result in a visit from your friends at the IRS. Therefore, you really want to avoid filing mistakes.
Below is a list of some of the most common mistakes when filing taxes so you can know what to pay extra attention to come tax time.
The first mistake is often a wrong Social Security number. Whether you put the wrong number, no number or misplaced digits, this is a mistake that you do not want to make.
Next, be sure to triple check your math! Software definitely helps you add up those numbers, but make sure to enter the correct numbers so your total is correct also.
Also, while many individuals file electronically these days, if you do not, you may have to sign that return. You may also have to sign the check it is attached to.
Software cannot make sure you did either of those tasks.
Another potential mistake is using a simple form like an EZ, when a 1040A or 1040 would get you a bigger refund. Some software will ask you questions to avoid this mistake.
If you made less than $54,000 last year, there are thousands of places you can get your return prepared free. Therefore, even paying a preparer could be the wrong move.
The final mistake is failing to file electronically and using direct deposit. If you do these two things, you can get a refund in days instead of weeks.
Most of these mistakes come from waiting until the last minute, then rushing through your return. If you want an error-free return this year, be sure to start early and take your time.
For more tips, go to Money Talks News and do a search for "Tax Hacks 2016"