Mistakes on your tax returns could mean a lower tax refund, an audit by the IRS, and even tax penalties. Here are a few common tax mistakes.
- Math Errors: Sometimes the biggest mistakes on tax returns is not a misunderstanding of the tax code, but just simple math mistakes. These type of mistakes can cost you on your refund, or even lead to penalties for improperly filed taxes.
- Informational Errors: A wrong social security number or not using someone’s legal name can cause filing errors. A typo or not updating your legal name change can cause confusion for the IRS, delaying your tax refund, or worse.
- Forgetting Additional Income: If you’ve received income from a side job, savings accounts, investments, or other financial gains, then you are required to list that income, a mistake that many people make.
- Not Listing Charitable Donations: Donations to charities that meet the IRS’s charity requirements can lead to tax deductions, but many people forget to include these donations. Keep receipts of all your charitable donations to make tax preparation easier, and to have proof of contribution in case of an IRS audit.
- Missing The Deadline: The IRS’s tax filing deadline is April 15th, but some people just don’t seem to make it on time. The IRS imposes penalties for late tax filing, so be sure to get your taxes submitted in time.
Tax returns can be a daunting task for individuals who do not fully understand the tax code. The more sources of income and deductions you have, the more complicated your tax returns will be. Don’t risk losing out on your full tax refund, or improperly filing your taxes, instead call Saint Louis tax preparation firm STL Tax at (314) 645-1614.