Common Tax Filing Mistakes Which You Must Avoid

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You might have spent several hours calculating your income and expenses, completing the required documentation, and finally finishing your tax return. It is sent to the IRS, and after a few weeks if you receive a notification stating that you have done something wrong, imagine how it would be.

Have courage. Most of the time, a mistake will not lead to a complete audit, but it can delay your return while the issue is resolved. If you have claimed tax credits or deductions for which you were ineligible, that warning may be a cause for concern. In this post, you can learn about the most common types of tax filing problems and how to avoid them.

·       Name Errors:

Ensure that your name matches the SSN number. It is the new spouses who commonly experience this problem. Hence, it is important to take care of this. Due to this issue, your return may not be processed. It is important to use the name on your Social Security Card, to prevent this from happening.

If you want to make some changes to your name, get it changed with the Social Security Administration (SSA). If you have got married recently, it is important to change your name with SSA as early as possible to prevent name errors.

·       Incorrect Account:

You have a higher possibility of entering the wrong routing and account numbers if you want to get the refund directly into your multiple accounts. Due to this your refund could get into somebody else account. It can also be sent back to the IRS. The worst part is, there is no process for replacing the lost funds that are transferred electronically. Checking routing and account numbers twice as you input them will help you avoid this issue. Verify that any numbers that were auto-populated are correct.

·       Not Reporting Additional Income:

Missing to report your additional income is also one of the common mistakes that many people do when filing for taxes. To avoid this problem, keep a track of your income regularly.

·       Mentioning Wrong Status:

Select the right option when filing for taxes, i.e., whether you are a single or qualified widow or others, whichever is apt. If you select the wrong option, your refund will be reduced.