With the mounting pressure of filing your income tax return by April 15, the Internal Revenue Service says mistakes become increasingly common.
Math errors by paper filers are still frequent in tax returns. Your refund may end up in someone else’s bank account if you give the wrong direct deposit information. Or you may end up missing out on valuable tax credits.
Here’s the top ten ways to avoid common mistakes that may delay a refund or force a second look at your calculations or paperwork, according to the IRS.
Electronic filing
You can avoid mistakes by using e-file or Free File tax software. It helps you with proper calculations and gives warnings to possible missing information.
Making Work Pay
Many taxpayers aren’t even aware of this tax credit – up to $400 for individuals and $800 for married couples. Some got the Recover Act assistance through fewer reductions in their paychecks. Those filing Form 1040 need to complete Schedule M and attach it to their returns to claim the credit. Taxpayers who received the Economic Recovery Payment must reduce the Making Work Pay credit by that amount. For those who don’t know, the IRS has a quick and easy tool to find out: Did I Receive a 2009 Economic Recovery Payment?
The Homebuyer Tax Credit
Worth up to $8,000 for first-time homebuyers and $6,500 for qualified repeat buyers, this tax credit expires April 30. More information is available on the homebuyer page.
Use the peel-off label
The IRS recommends using the peel-off label for mailing your returns. It expedites the process. If you don’t have a peel-off label, fill in all requested information clearly and carefully, including Social Security numbers.
Check only one filing status
Make sure to check the right number of exemptions boxes as well, and double check Social Security numbers.
Double check all figures
This age-old advise is as important today. Double check all figures. Software prevents most mistakes, but calculating mistakes are still common in paper returns.
Routing and account numbers
If you want to make sure to get your refund as soon as possible, make sure the proper financial institution routing and account numbers are entered on the returns. It’s possible that a refund can be deposited into the wrong account.
Sign and date the return
Remember, nothing is final until signed. If filing a joint return, both you and your spouse must sign and date the return.
Attach forms to the front of the return
“Paper filers need to attach W-2s and other forms that reflect tax withholding, as well as other necessary forms and schedules, to the front of their returns,” the IRS said.
Do you owe tax?
If you owe money, a number of e-payment options are available. Or send a check or money order payable to the “United States Treasury.”
