Common Mistakes to Avoid When Filing Taxes
Although some mistakes are common, avoiding them can help to prevent an IRS
audit or other unpleasantries. While the IRS understands that some errors will
occur, avoiding the most common mistakes is certainly in your favor.
Some common mistakes include:
- Math errors
- Not including required forms and schedules, such as W-2's
or 1099's. These should be stapled to the form so that they will not get lost.
- Forgetting to sign your tax return
- Incorrectly entering your Social Security Number
- Deductions for Home Office
- Capital Gains and Losses
- Entertainment and Travel
- Leaving Portions of Forms and Schedules Blank
- Illegible Handwriting. Writing in all capital letters and in black ink
will help.
- Not Rounding Dollars to the Nearest Whole Dollar. All amounts should be
rounded typically. This will simplify the math as well.
- Incorrect Filing Status (Single, Married Filing Jointly, etc.). Some filing
statuses can only be used in special circumstances.
- Payment of Tax Due (if you owe taxes)
- If a form cannot be filed by April 15, an extension must be applied for
with form FR-127 Extension of Time to File before the April 15 deadline.
What If I Make a Mistake?
If you find that you have made a mistake, even minor ones, you should file
an ammendment using form 1040X.
The Best Protection Against Errors
The best way to protect yourself from making mistakes on
your tax forms is
comprehensive training. While many errors are easily avoidable,
like the ones above, many areas of tax preparation are not
intuitive. Just
employing "common sense" will not be sufficient
to protect you.
See How the Professional Tax Preparer™ Certification Teaches You to Reduce Your Tax
Burden
