The information and jargon surrounding taxes can be pretty intimidating. People make mistakes in the thousands every tax session when filing. While the system is a bit complexed, the mistakes are rather simple. Most of them are the result of waiting until the last minute, not having information handy, and not reviewing the forms before submitting all things that can be avoided. We’ve provided a list of 4 of the most common filing mistakes people make.
4 Most Common Mistakes
Check out these four common mistakes to help you avoid them the next time you file your taxes.
1. Not Filing On Time
A good portion of people waits until the last minute to file their income tax returns. Usually a week before the due date. You can file for an extension but you still have to pay by the due date and if you’re late paying this you will be charged interest. Most wait until the week before. No being prepare causes them to look for emergency tax services which can be pricey if the wrong services are chosen. Sometimes they run into issues along the way that can result in delays and cause them to miss the date.
2. Missing or Incorrect Information
For whatever reason people miss checkboxes, type information in the wrong spots, or have general typos. They often don’t review what they’ve put before submitted the form and this negligence causes issues later on. They also don’t have the necessary documents and information in front of them and make a guesstimate and end up providing incorrect information.
Also read: What is IRS Debt Forgiveness Programs?
3. Filing With The Wrong Status
Another common mistake is that people file under the wrong status. This causes issues with calculating their deductions and tax breaks. Married couples versus singles have different tax breaks available to them and by filing under the wrong status they can miss out on those options. Singles, married couples filing jointly or separately, widower, etc. People don’t review these statuses carefully before filing.
4. Failing To File
Lastly and probably one of the biggest mistakes and issues is not filing at all. Even if you don’t have the money to pay your taxes you should still file them and then contact the IRS to set up a payment plan. Many people fail to do this and are charged with tax evasion or some other form of penalty.
It can be difficult to know exactly how to file your taxes but there are tutorials and other information out there to help you through the process. Alternatively, you can hire a service to help you file them correctly. It is better to do this right the first time to avoid any fees, penalties, or possible charges. Prepare in advance to complete your tax forms and make provisions for possible issues that may come up as this can result in your filing late. It’s also a good idea to pay attention to current tax news to be aware of any changes and updates made to the process.