
Common Tax Refund Mistakes That Could Save You Money
Every year, as tax season draws closer and people start thinking about filing their tax returns, many stressed people leave things to the last minute and find themselves rushing through the required tax forms. However, trying to get through filing taxes as quickly as possible or not having enough attention to detail can cause some serious errors and mistakes during tax filing.
These common mistakes can cause things like, the IRS taking a closer look into your return, delayed tax refunds and slower processing time of the tax return, among others:
1. Errors with basic information
Believe it or not, some people end up getting their basic information wrong on their tax return. For example, misspelling names of dependents and spouses, errors with dates of birth, and also getting social security numbers wrong. Some people try to guess without double checking the social security numbers for themselves and family members.
2. Filing status
When you file taxes online or via paper form, some people find themselves accidentally selecting the wrong filing status. This can easily be done especially between the married filing separately and married filing jointly options. However, this common mistake can cause a huge difference with the tax deductible that’s applied from which status is selected. Always double check that the appropriate status has been applied.
3. Forms not being signed
A very common mistake that the IRS sees on a yearly basis is tax forms not being signed. Forms having no signature on them makes the tax return invalid, even if everything else is correctly filled out on the form, all signatures are required in order for it to be filed.
4. Mathematical mistakes
Another common error that people tend to make on their tax return is with the numbers and figures entered on the form. The IRS checks that all numbers on the first two pages add up correctly, so triple checking your math is critical to getting the form right.
This mistake is easy to make especially when filling out the paper forms by hand, but using tax software like H&R Block or any other tax software can help you get the figures correct so that you don’t run into any future problems after filing. When people file taxes online using software or a tax professional, the common errors with mathematical figures can be easily avoided.
5. Incorrect bank and financial information
Putting down the incorrect bank information like account or routing numbers happens each year when people file their tax returns. Although this is a common mistake, it’s also very frustrating, as it causes errors and delays with getting tax refunds. Most e-filed returns see the tax refund in their bank account within a few weeks. So making sure all bank information is error-free is critical to receiving your refund in a timely manner.
6. Deductions and credits
With tax returns comes the figuring out and knowing what deductions and credits you are eligible for. It can be a complex task, but taking time over getting the numbers right is highly important. Each person’s taxes are different, especially when there are various deductions and credits to claim. It’s best to consult a tax professional if you are overwhelmed with getting this part right.