Mistakes on Taxes: Avoid these Common Errors
Tax season is upon us. The tax filing deadline is just over four weeks away and many taxpayers are gathering their tax forms and starting to fill out their returns. Whether looking at a big refund or a tax bill, taxpayers can help to better ensure a smooth process by avoiding these common errors:
- Mistakes on name, address. One of the most common mistakes is a failure to properly fill out your name and address. This often happens after a marriage or divorce. Those who have changed their names with the Social Security Administration (SSA) need to make sure their tax filings reflect the information on file with the SSA.
- Neglected income. It is important to claim all applicable income on your tax returns. This means taxpayers are generally required to report income from any side jobs, like those through Etsy, VRBO or other online platforms. An easy rule of thumb: if you got a tax form (1099 or K-1), the Internal Revenue Service (IRS) probably did, too. If the IRS knows about the income, it will likely watch for it on your returns.
- Deductions and credits. The IRS is likely to review deductions and credits, especially if they do not seem in line with the rest of your filings. As a result, it is important to keep documents handy to support these claims.
These mistakes can result in a delay of a refund or additional questions from the IRS. In the event mistakes lead to additional questions from the IRS, it may be wise to seek legal counsel.