Friday, November 25, 2011

Some Common Mistakes that are Made on Tax Returns

An old Social Security card with the "NOT...Image via Wikipedia

Filing a tax return is something that many people have no problem but others find quite complicated and stressful. The process is actually quite simple but there are some common mistakes that people tend to make, which can make the processing of tax returns far slower, which can result in delays with any rebates that are due from the IRS.

Familiarizing yourself with the common mistakes that many people make on tax returns can help to make the process easier for you, as you will have a better idea of what you should and should not be doing when you complete your return. Whilst there are many common mistakes that can be made, five of the most common ones are listed below:

Problems with social security numbers: Many people make the very simple yet very common mistake of either missing social security numbers off the tax return or putting the incorrect numbers. Make sure that you check all social security numbers carefully and enter them exactly as they are shown on the social security card

Choosing the wrong filing status: Some people inadvertently choose the incorrect filing status on their tax return. If you are unsure as to which filing status you should use you can look at Publication 501, Exemptions, Standard Deduction, and Filing Information for further information and guidance

Errors with calculations: Even those who are whizz kids with numbers can sometimes make a mathematical error on their tax return. It is important that you double check all of your figures to ensure that they are all accurate. You can make things easier by filing your return online as all of the calculations will be done for you, saving you a lot of time and hassle

Incorrect banking details: This is an easy mistake to make, particularly when you have been completing your form and are probably fed up of looking at numbers! However, if you put the wrong account details you will be the one to suffer, as it will delay your rebate. If you are looking to have your refund paid direct to your bank make sure that you double check the accuracy of your banking details so that processing can be done quickly and easily by the IRS

Failing to sign and date the return: A surprising number of people forget to do the very simple but absolutely necessary task of signing and dating their tax return. Always make sure that you have done this before you submit your tax return

Esther works for an Illinois malpractice law firm and in her spare time is a personal finance and consumer blogger. She writes regularly about small business issues and issues affecting consumers, covering mortgages, savings and taxes.

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