In 2019, many Americans are likely to be audited by the Internal Revenue Service. Despite internal reshuffles and layoffs, after the adoption of the new law on tax cuts, the tax season began in January and lasted until mid-April. However, many tax returns were returned to senders who made the most common tax mistakes. Because of this, many taxpayers are postponing the filing of documents until the last days, trying to correctly fill out their declarations.
The IRS website describes typical common errors in filing tax returns. We have processed this information and suggest that you familiarize yourself with it here so as not to commit these mostly simple mistakes and submit documents in time.
Some errors may not be the simplest, but very often they are easily avoided. To do this, you can use the electronic form, which is much easier to correct errors in the process of filling. Today, more than 90% of American taxpayers use a form on the IRS website to submit their tax report.
However, some of the US taxpayers still prefer to fill out and send their tax returns manually in order to avoid the possible costs associated with the software. It is also impossible to include explanations of some tax deductions through electronic declarations.
Despite the fact that the electronic versions of the declarations do not allow to err even with the electronic registration, many errors in the IRS lists remain common. Many of them may be some of the most common tax mistakes, even using this method, many people admit them.
Sometimes people give the wrong numbers, forgetting to add credits and deductions due to them, or simply fill in the wrong fields. Such mistakes can prevent taxpayers from getting their tax refund due. Here are some of these mistakes:
- Registration of tax documents in the wrong order
To get a tax refund on time, you need to fill out the documents in a sequential order.
- The tax declaration is filled out by illegible handwriting
Those who manually file tax returns often illegible fill in their data or the necessary numbers. The same people work in the IRS, as well as you are, so if they cannot make out what is written in your report, then they cannot process your documents, and you cannot receive the tax refund due to you in time. This is one of the simplest most common tax mistakes, which can not happen with the electronic method of filing documents.
- Sending your return to the wrong IRS office
In different regions of the country, there are their own IRS offices, which have their own addresses. There are also different branches of the IRS for receiving different types of documents. Sending documents to the wrong address you lose time on resending your documents and get a tax refund delay. Specify the correct address of your tax office on the IRS website.
- Using the wrong column from the tax table form
When filling out a tax return, you must use document 1040, which contains tax tables for the calculation. Many people admit such elementary most common tax mistakes as they simply looked at the wrong column in the tax table. Just be careful when filling out the report.
- Choosing the wrong filing status
To qualify for a tax credit or tax deduction, you must use a certain filing status. Incorrect filing status does not allow taxpayers to get their deductions.
- Failure to include all necessary information about checks or money transfers
The taxpayer is obliged to include in the tax return documents confirming the payment, if he owes money to the Internal Revenue Service. The check must indicate that the payment was made in favor of the US Treasury. The document confirming the payment must include the details of the beneficiary and payer, as well as the amount of payment.
- Sending in return with inadequate payment
Late submission of a tax return can bring you trouble, so if you send a manually completed declaration by mail, you must pay the adequate cost of sending mail. Otherwise, the mail will return your documents to you, which is much slower than when sending an electronic declaration, and you risk being late with the timely submission of tax reports.
- Failure to attach forms 1099-r
In order to withdraw funds from the IRA, as well as applications for pension plans in the IRS, form 1099-R is used. If you do not attach this form to your tax report, they can be taken as income. This state of affairs can increase your tax and serve as a reason for audit.
- Refusal to include all forms of W-2
If you are a hired employee, then you must indicate in your tax return wages and deductions, and also add to your tax return an official copy of the W-2 form in which they are listed. You must get this form from your employer.
- Wrong calculation of deductions and tax credit
A tax credit is a reduction in the amount of tax you have to pay, while tax deductions reduce the taxable base, to a lesser extent, affecting the decrease in the total amount of tax imposed. The inability to distinguish one concept from another is one of the most common tax mistakes, which can lead to incorrect calculations and tax overpayment.
- Not signing and the date of return
Failure to sign and return dates often results in the return of your documents, which may outcomes in late submission and fines.
- Failure to claim proper deduction if your age is over 65 or blind
People who are over 65 or have blindness are entitled to tax deductions. However, they do not occur automatically, so you must declare this using form 1040 or 1040A. People often incorrectly fill them.
- Do not including negative amounts in parentheses.
One of the most common tax mistakes is the inability to enclose negative numbers in brackets. In this case, your information may be misinterpreted, leading to an overpayment of taxes.
- Incorrect list of all dependents
All dependents must be indicated on the tax return. For this, the names and social security numbers of each must be filled out. Many taxpayers do not fully indicate the data, or forget to include some.
- Failure to make a copy of the signed return
Before sending your completed tax return to the IRS, do not forget to make a copy of it, especially if you are going to take any loans in the coming year. For example, a student loan or mortgage will require a copy of your last year’s tax return. If you forget to do this, the IRS can send you a copy, but you just have to wait for a while.
In fact, people make many mistakes when filling out and sending their tax reports, here we have listed only the most common tax mistakes. Some mistakes can be called innocuous, while others can lead to a significant overpayment or even punishment by a fine or legal action.
When filling in your tax documents, be attentive to details. If you do not understand how to correctly calculate and fill in some data, then you should contact a professional accountant or consultant in order not to make mistakes.
You can also email us for advice.