[youtube https://www.youtube.com/watch?v=cTJcyeYzUec]It goes without saying that it takes the IRS much longer to process tax returns that have mistakes. That also means that those who make mistakes who are due refunds will likely have to wait much longer to get them.
Here are the most common mistakes and how to avoid them:
- Incorrect or Missing Social Security Numbers – Be sure to enter your Social Security number, your spouse’s Social Security number if you are filing jointly, and the Social Security numbers of anyone else you are claiming as a dependent, exactly as they appear on each individual’s Social Security card. Also, make sure the Social Security numbers match the names.
- Taxable Amounts of Retirement Distributions – Some people have difficulty figuring out the taxable amount of their IRA distributions, pensions and annuities, or Social Security benefits. What can help? Utilizing tax preparation software or using the worksheet provided by the IRS will help you get an accurate number.
- Math Mistakes – One of the most common mistakes made on tax returns is incorrect math. Simple addition or subtraction errors can bring the processing of your return to a screeching halt. Be sure to double check your work, or better yet let tax software or your tax professional do it for you.
- Incorrectly Claiming Credits and Deductions – Incorrectly claiming credits you are not due is unfortunately a common mistake. Things such as the Earned Income Tax Credit, the Child Care Credit, the Premium Tax Credit, and the Special Standard Deduction (for people who are senior citizens or blind) all have specific requirements to be eligible. Make sure you have fully qualified yourself before claiming one of these.
- Not Choosing the Right Filing Status – There are several different filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widower or Widow with Dependent Child. The IRS Interactive Tax Assistance Tool can help you choose the right status.
- Incorrect Banking Information – Another common error is putting in the incorrect routing and bank account number for direct deposit of your refund. Be sure to double check the numbers before sending off your return.
- Forgetting to Sign and Date Return – If you mail a paper return, don’t forget to sign and date it. If you are mailing a joint return with your spouse, both of you must sign it. Failure to have proper signatures will force the IRS to return your tax return for proper completion. This can be avoided by e-filing.