Eight Tax Mistakes To Avoid

The Internal Revenue Service (IRS) is reminding taxpayers to take care to file accurate returns. Mistakes happen, but when they do, they can slow the processing of returns and delay tax refunds. In some cases, errors can lead to returns being kicked back (like not indicating whether you had healthcare coverage).

Here are eight tax goofs that IRS urges taxpayers to avoid:

Missing or inaccurate Social Security Numbers. It’s easy to fall victim to “fat finger” error. Hitting the wrong key on your keyboard or otherwise making a mistake when entering a number (for example, hitting an extra number). The best way to avoid a fat finger error? Take your time when filing your tax return and check – and then double-check – those numbers. And don’t guess: Be sure to enter numbers, including your Social Security Number, exactly as it is printed on your Social Security card.
Misspelled names. My last name is three letters long. You’d think that would make life easy, but it’s just the opposite: Folks are constantly dreaming up novel ways to spell it. I say that to say that even the most simple names can easily go wrong at tax time. Be sure to spell names as they are printed on the respective Social Security cards (for info on name changes, click here). If you’re working with a tax preparer, be sure to check out those names before you sign the return. Unless you’ve written it down, your tax pro has no idea that your variation of Brittany is Bhrightenni. Just saying.
Incorrect filing status. You can choose from one of five filing statuses on a federal tax return: single, married filing jointly; married filing separately; head of household; and qualifying widow(er) with dependent child. Keep in mind that no matter what you do for the rest of the year, your filing status is determined by your state law as of the last day of the calendar year.
Math mistakes. Even if math is your strong suit, math errors can be easy to make, especially if you’re rushing to complete your tax return. One of the first things that the IRS checks on a tax return is math so, at a minimum, you want the figures on the first two pages of your tax return to add up – and that’s the easy part. Figuring the taxable portion of a pension, IRA distribution, or Social Security benefits can be more difficult, so you’ll want to take your time and double-check your math. One advantage of using software (or a tax professional) is that you don’t have to do the math on your own.
Stumbling over credits or deductions. The number of credits and deductions available to taxpayers can be overwhelming. Sometimes, you may think that a credit or deduction is appropriate when, in fact, you’re phased out due to income or other restrictions. If you aren’t sure about whether to claim a credit or deduction, read the instructions on the form carefully or check with your tax professional. Remember that the IRS Interactive Tax Assistant can help you figure out whether you’re eligible to claim certain credits, and if you can deduct expenses on your tax return.
Incorrect bank account numbers. If you’re expecting a tax refund, the IRS urges you to e-file and use direct deposit for the fastest results. But it’s only fast if you provide the right information. Make sure you enter your bank routing and account numbers correctly. If you’re not sure what you’re looking for, check with your bank or grab one of your checks (yes, they still exist): You’ll see three sets of numbers on the bottom. The first set of numbers is your bank routing number and the second set is your bank account number (the third set is the check number, but you won’t need to include that information on your tax return).
Unsigned tax returns. No matter how thorough and accurate your tax return is, it’s not considered a valid return unless it’s signed. If you are filing a joint tax return, your spouse must also sign. If you e-file your return, you must still “sign” the return, typically with a personal identification number (PIN).
Filing with an expired ITIN. An Individual Taxpayer Identification Number (ITIN) is assigned to a taxpayer who is not eligible to obtain a Social Security Number. Under current law, ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer (this is a departure from the “once in the last five years” rule from 2013). In addition, any ITIN with middle digits of either 78 or 79 (meaning 9NN-78-NNNN or 9NN-79-NNNN) will also expire. The IRS will process and treat as timely a return filed with an expired ITIN, but won’t allow any exemptions or credits; tax refunds will also be delayed.