Saturday, February 9, 2008

15 Filing Mistakes to Avoid

  • To avoid filing mistakes, review your entire return.
  • Provide the correct mailing address if you choose to mail a paper return.
  • Choose an alternative tax preparation method, and avoid the most common errors.

Review your tax return for common errors that could delay the processing of your return and refund. Common mistakes include the following:
  1. Incorrect filing status recorded
  2. Social security number(s) incorrect, missing or don't match name(s)
  3. Incorrect or missing forms and schedules
  4. Return not signed
  5. Claiming ineligible dependents
  6. Failing to claim credits (Child Tax Credit, Earned Income Credit, etc.) or figuring credits incorrectly (because of not understanding credit eligibility or incorrect calculations)
  7. Failure to report and pay domestic payroll taxes (if you are employing a housecleaner, in-home caregiver, nanny, etc.)
  8. Forgetting to claim income that's not included on a Form W-2, Form 1099 or other return
  9. Not filing a return when due a refund
  10. Failing to figure whether or not you're liable for the Alternative Minimum Tax (AMT)
  11. Entering the wrong amount of taxable Social Security benefits
  12. Mailing your return to the wrong address
  13. Math errors (according to the IRS, a math error is an incorrect number entered on the return — with or without a calculation — such as reporting wages of $29,472 as $24,972)
  14. Standard deduction used when itemizing is more advantageous (the GAO estimates that more than 500,000 taxpayers could save by itemizing)

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