Some Common Income Tax Return Errors

While e-filing has greatly improved the accuracy of taxpayer returns, there are still some common user errors which can cost you time and money. Here is a list of some of those common errors.  Please read through them and do your best to avoid these this tax year.

1. Different names can cause a problem.

While misspelled names can cause an issue when the name on the tax form doesn’t match the name with the Social Security Administration, we’re talking about using different names. This problem may arise when someone gets married and changes their surname and doesn’t follow up with the Social Security Administration (SSA). The same goes for when they get divorced.

2. You don’t have to count additional income if it was under a certain amount – or do you?.

If you worked a side job and your boss gave you a 1099, you have to count it. If you received this tax form, it means your boss also filed it with the IRS, saying they paid you. If you don’t include it on your income statement, you may get audited and have to pay penalties and interest on the unpaid income.

3. Wrong direct deposit information is a common error.

While many people e-file and wait for their refund to be deposited directly in their bank account, wrong account or routing numbers could delay that process. A simple error like switching 2 numbers could result in you not getting your money right away and having to wait for a check to be mailed to you.

4. Inputting the wrong social security number is often an error.

Once upon a time, the IRS used to put Social Security Numbers (SSN) on tax packages. They’ve since stopped doing it for security reasons, but it means that taxpayers must enter it themselves. It may either be forgotten or input wrong, causing an error and taxpayers using e-filing software are not immune to this error. Everyone should double check that their SSN is typed in correctly.

5. People forget to sign and date their tax return.

A tax return won’t be processed without a signature, this goes for both written copies and e-filed copies. If you’re mailing it, make sure you’ve signed all the areas that require a signature. If you file electronically, you will either be asked to sign electronically or verify your identity using a personal identification number.

6. Missing the deadline is a common mistake.

While most of us know April 15th is the deadline, it can easily sneak up on us. Many people put off doing their taxes until the last minute and end up missing the deadline.