Depending on the circumstances, tax season can be a relatively straightforward procedure or one that requires a significant investment of time and labor. Here are some of the most common mistakes Americans make when filing income tax, along with ways to avoid them.
Here are some mistakes you should avoid depending on Guillaume D King
Burr on the bases
First, from the income and abstentions reported by business owners or other sources to your address as well as your social security number, make sure the information on your tax return matches the original documents. with the IRS. Taxpayers often make mistakes with the numbers. If you are planning a refund, make sure you entered the routing number and credit union account number correctly. Whenever it comes to math, even a minor mistake can skew your numbers and subject you to an IRS investigation.
Failure to report additional income
Having multiple sources of income complicates your tax situation. This is true whether you carry out your activity as an entrepreneur or laborer or simply receive income from your investments or savings accounts. Each job or account should provide you with a 1099 form, which details your income. A copy is also sent to the IRS. Write down any new income and be sure to report it on your tax return. Alternatively, you may be required to pay interest or incur a penalty on unreported income.
According to IRS fiscal 2018 figures, nearly 2.5 million arithmetic errors were identified on forms filed for the 2017 tax year. Errors can range from basic arithmetic errors , addition, multiplication or division to selecting the wrong amount in a tax table or calendar.
The IRS program normally detects these errors and sends you a notification explaining the problem and informing you that your refund has changed (or that you owe more money). So while correcting math errors is very easy, they can cause delays in processing your return.
While the retail takes more time and effort (along with receipts and other documents) than claiming taxable income, you risk wasting money doing so. Guillaume D King suggests that you consider which option will result in a larger tax deduction. It should be noted that according to the Tax Cuts and Jobs Act, the standard deduction almost doubled for the 2018 tax year; retail is no longer likely to save you money. 1 Still, it’s never a bad idea to double-check the numbers. Most tax software will determine which method is most beneficial for you.
Missing the tax deadline
You should be aware of the deadline for filing your taxes. If you miss the April deadline and owe the IRS money, fines and interest add up daily. If you owe a tax refund, not filing it on time can delay it.
You can get additional time to submit your taxes by requesting an extension. However, keep in mind that all payments are due in April, so the longer you wait to submit, the more you will need to pay.
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