Mistakes to Avoid When Filing Taxes

Over the last several years, tax software has helped a lot of people avoid making errors on their tax forms; however, even with new technology, mistakes are still possible.

Here are five mistakes you should avoid when filing your taxes because these mistakes could lead to significant negative consequences:

Miscalculations

Miscalculations are an easy way to get your business audited, so if you can avoid them, avoid them by any means necessary. If you’re not sure how much money you’ve made over the last year, allow an accountant to file your taxes instead. It is better for someone who is trained and certified to do your taxes to make a mistake versus you making a mistake doing something you could have easily avoided.

Misspelled Names

Spell check your taxes before you file them. The IRS is very quick to notice spelling errors; in fact, the IRS may start to ask questions even if you simply misspell a single word or your name. Think about it. If you misspell your name, you could easily also make mistakes on how much money you made. Attention to detail is everything.

Direct Deposit Errors

Because the IRS now makes it possible for you to have your refund check deposited into your account, it’s important that you make sure you don’t make any errors when writing down checking account information. One wrong number could not only send red flags to the IRS but it could also mean that your IRS check could end up in someone else’s bank account.

Forgetting Charitable Contributions

Charitable contributions can save you so much money at the end of the year. Because of this, you will want to make sure you don’t forget to write down your charitable contributions. Writing these charitable contributions will not only decrease the amount of money you owe back to the IRS, but it will also show just how philanthropic you have been throughout the year.

Missing Deadlines

Whatever you do, don’t miss your deadlines. Missing deadlines could have you owing thousands back to the IRS. If you be approaching a deadline and need an extension, contact the IRS or consider having your accountant call the IRS and make a plea for an extension for you.

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