A common saying is that the only two things you can count on in life are death and taxes. While this is true, you should not pay more than the law requires when it comes to your personal taxes. Many filers miss exemptions and deductions because tax law is so complicated, and they end up paying more than they should.
From miscalculations to misspelled names, even the smallest mistake can cost you money that you should not have to pay. To help keep money in your pocket, there are four mistakes you should avoid when filing your personal taxes.
1. Social Security number woes
When you file taxes, you must remember the Social Security number of yourself, your spouse and any dependents you have in the house. If you put the wrong number in, the IRS may reject your filing, and this can delay your refund. Triple check the numbers before you submit your taxes.
2. Miscalculated math
Bad math is one of the most common mistakes that individuals make on their tax returns every year. While some computer software makes this process easier, it is still essential that you input the right numbers or have a professional go over your taxes before filing. You may end up owing more or getting less back if you have math miscalculations on your return.
3. Income sources
You will get a W-2 form from your employer toward the end of January each year, but did you have other sources of income you need to report? You should include all W-2 forms in your filing and any 1099 or miscellaneous income you received. If you are audited and you have not provided the right numbers on your income, the IRS may fine you.
4. Complicated job on your own
Taxes are complicated, whether they are for individuals or corporations. If you are filing for the past year or just wondering about the legality of the year’s taxes, it is often helpful to speak to an experienced tax attorney with any questions you have.