Friday, September 16, 2016

Secure Finances By Avoiding These Three Common Tax Mistakes

Filing taxes these days has been easier thanks to a variety of tax assistance software. Even if these applications make the task less time-consuming, a taxpayer should check and double-check all the forms for accuracy. A simple mistake on a tax form could cost the taxpayer or prevent him from receiving refunds.

Image source: Irs.com

1. Using the wrong IRS form.

There are many types of IRS forms. Taxpayers must know which one to use that is according to his or her status to prevent deductions and delays in filing.

2. Undeclared additional income.

Another problem could arise from failing to report income that is not a part of the W-2 or 1099 reports. Examples of these are rental income and self-employment income, which have corresponding taxes. Taxpayers should remember that additional earnings mean additional taxes and filing work to prevent penalties.

3. Writing the wrong social security numbers and names.

The taxpayer often overlooks misspelled names and missing numbers, the most important details in the form. Social Security numbers and names of spouses, dependents, and children must be properly listed to qualify taxpayers for incentives such as child tax credit and earned income credit. Cases that involve refunds credited to a different person due to a wrong Social Security number have been known to exist.

Image source: Thenest.com

When all the details have been sorted out and prepared for submission, taxpayers must never forget to date and sign their returns. The IRS rejects unsigned tax returns even when it’s a joint account or an e-filed return. Prevent delays by checking and double-checking all the details beforehand. Once everything on the list is final, date, sign, and submit.

Tax Tiger offers affordable, effective, and aggressive tax resolution to hardworking individuals going through issues with the IRS. Visit Tax Tiger’s official website to know more about its services.

5 comments:

  1. People should be knowledgeable on this.

    ReplyDelete
  2. It is the responsibility of the taxpayers to know how to secure their finances..

    ReplyDelete
  3. Before, I am really confused on what IRS form should I use. People should make sure they are filling out the correct forms.

    ReplyDelete
  4. I don't have a wide idea on this. Thanks for the article!

    ReplyDelete