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October 16, 2017 | Posted in:

Avoid these Common Tax Mistakes

There are nearly 1,000 different tax forms used by the IRS to report tax obligations. It’s no wonder the IRS faces thousands of tax returns with errors each year. Our CPAs have seen many mistakes over the years, and in order to speed up your refund process, learn from these most common mistakes:

 

Wrong names and Social Security numbers. Taxpayers regularly make mistakes by entering incorrect information for their spouses and dependents. If you recently married or divorced but haven’t yet changed your name with the Social Security Administration, you’ll need to file under your old name.

“Make sure the address you list on the return is correct as the address listed on the tax return is where tax correspondence will be sent too. If you have moved or plan on moving, you can file a Form 8822 to change your address with the IRS.” – Chris Cicalese, CPA

 

Errors in age and birthdate. Much of the tax code is based on age. Without the correct birthdate, your eligibility for tax benefits could be cast in doubt.

“An incorrect birthdate can also result in an electronic filing rejection.” – Rich Middleton, CPA

 

Incorrect bank account numbers. If you’re expecting a refund and want to have it direct deposited into your account, double-check your routing and account numbers. The IRS may catch most errors, but many are often missed. Once your refund is deposited in the wrong bank account, it’s very difficult to get it fixed.

 

Overlooking online donations. Many people forget about emailed receipts at tax time. Catch missing deductions by searching your email inbox for keywords such as “gift” or “donation” before you file.

 

“Review your check register and year end credit card summaries as well.” – Rich Middleton, CPA

 

Missing forms. Taxpayers can miss dividend, interest and brokerage forms (Form 1099s) they get from their banks and investment accounts. These potential missing forms now also include Form 1095, proof of health insurance. If a form is missing, it may cost you extra tax, penalties and interest.

“Comparing the information on last year’s return to your current information on hand will help identify missing tax forms” – Rich Middleton, CPA

 

Not signing the return. Don’t forget to sign your return! The IRS won’t accept an unsigned return, and many people forget this last step. An unsigned tax return is the same thing as not filing in the eyes of the IRS. You not only face penalties and fines, but your tax return is open for audit indefinitely.

 

Have you realized afterwards that you made an error, forgot the address update, or left of a form? Consider filing an amended tax return. Contact Alloy Silverstein’s Cherry Hill or Hammonton office for further guidance.
 
© MC 2017 | “Financial Tips” are published monthly to provide useful financial information. The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. Visit www.asfinancialservices.com for more information on managing your finances with a sound financial plan.

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