Would you rather have your $2,000 tax refund sooner or later? According to the IRS, that’s what the average tax return was in 2006. Yet millions of returns were delayed not because of complicated issues, but due to simple mistakes in the filing process. Check for these common errors before completing your tax return this season:
- Bad math – The IRS examines all returns for mathematical errors, so take out those calculators and double-check your arithmetic. Better yet, use tax software that will automatically do the calculations for you. And be careful when transferring figures from one schedule to another. Simple math errors, which unbelieveably occur very frequently, will at best slow down your return and at worst will lead to a penalty.
- Incorrect or missing Social Security numbers – Your Social Security Number (SSN) is your identity, according to the government, so carefully print your correct SSN at the top of each page. Copy the SSN for your spouse and dependents exactly as they appear on their cards. If there have been any name changes, contact the Social Security Administration immediately to correct the information.
- Incorrect address – You won’t get a return if the government can’t find you! Tens of thousands of refund checks end up back at the IRS annually due to people providing the wrong address or moving without a forwarding address. Avoid this issue by using the peel-off label provided with your return (making any needed corrections). And be sure to have your mail forwarded if you move.
- Misusing the tax tables – Be sure to find the correct column for your filing status since the tax rates are different from one status to another. To manage the small print of the tables, use a piece of paper to “underline” the correct column and use a magnifying lense to highlight the figures.
- Not signing and dating the return – In the rush for timely tax returns, many people simply forget to sign and date their return. An unsigned return won’t be processed and if you miss the April 15th deadline, you could trigger late penalties. If filing a joint return, both spouses must sign and date the return.
- Insufficient postage – Thousands send out their tax returns only to find them back in their own mailbox a few days later – again, a mistake that could result in late fees. Send it once with the right postage and you’ll save time and money.
You can’t avoid taxes, but you can stop your refund from avoiding you! Take a few extra minutes to check these important points to help ensure that your return is processed quickly.
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