If you have landed on this article, so there can be two scenarios the first one being you are going to file for taxes and hence are looking for beginner mistakes or you have filed and just doublechecking for any errors. Either way, this article will help you in telling you about the tax filing mistakes from a beginner to an advanced.

So let’s Start

Tax filing is a complicated scenario and if you have decided to do it on your own then it can be pretty burdensome as well.

So in this blog post, we have listed some of the tax filing mistakes from beginner mistakes to complex mistakes.

If you are first time doing your own taxes then you are prone to making some of the mistakes which beginners make and might end up filing the tax the wrong way and getting your form rejected by the IRS. 

Hence we have compiled some of the beginner and simple mistakes people make while filing taxes, it would be better if you look at it before filing your taxes.

Mathematical Errors

Mathematical errors are among the most common beginner errors in tax filing due to the following reasons:

  • Not using exact digits used in other tax forms and rounding them off.
  • Making math errors in doing the calculation

Note that the IRS does not like your rounding off digits because they want exact digits on every form.

For ex. If you claim your Income to be $61,655 in one form and then mention $61,650 as your income in another form then that can potentially raise a red flag.

Solution: Use Exact Digits Everywhere to raise any kind of Red flag.

Wrong Social Security Number

Social Security Numbers are also a big mess when it comes to tax filing as the majority of people type in or write wrong social security numbers of either theirs or their family’s.

You should never mess up with your social security number as it can result in complete rejection of your tax filing so be careful when typing or writing your Social Security number and don’t forget to mention your spouse’s and your dependent’s number even though your child is just 2 years of age.

Solution: Type the exact Social Security Number using the Card in front of you and don’t try to guess it.

No / Forgotten Signature

Whenever you file for taxes you have to Sign the form whether it is a digital or hard copy and if you forget to sign the form, your tax filing will be rejected.

Outdated Information

If you decided to do your taxes out of blue this year, then you should first consider going through all the updates and news around tax filing. For ex. In the year 2018, the IRS completely changed the form for filing i.e. From 1040A or 1040EZ are now obsolete, and Form 1040 is completely revised and is currently in use.

Also note that if you are a business and you need to should your P&L then you need to complete your schedule C.

Maybe you don’t know that and that’s why you could end up filling that form and waste your time so consider going through the latest updates around it.

You can start by going through these blogs for updates or the official IRS website for the latest news around various things. Check the updates here.

Wrong Data 

Another common mistake is also filling in the wrong information or having a Typo during filling the form or leaving a box blank unintentionally leading to an error during the filing. Also typing in your name or the taxpayer’s name incorrectly can be the issue sometimes.

Solution: Check the facts before and after filing the taxes.

Late Filing or Missing Deadline or Filing for Extension

Missing deadlines is also a major mistake among self tax filers as they procrastinate and end up filing for extensions for filing their taxes.

Also, Check out the Consequences of filing an extension for tax filing.

Not Keeping a Copy of Your Return

Whenever you file for a return you should always save a copy with you of the tax return as the IRS states that they can review your return for at least the last 3 years.

So, You should keep a copy safe with yourselves. Also, there are many software nowadays which lets you file the taxes and save a copy of it for the last 6-7 years.

Not Including the Extra Income

It does not matter what you do but if you have earned a little extra from almost any place you have to report it to the IRS. Even if you received just 100$ for fixing someone’s glitchy computer or fixing someone’s pipes.

Anything you earn has to be reported to the IRS because even if you don’t do it the other end i.e. the person paid you will be reporting to the IRS.

And if you are a freelancer then obviously if you receive any payment made to you above 600$ then you will receive the form as well.

But if you receive payment below 600$ then you might have to self report it.

Missing a Tax break

If you are not familiar with tax credits and exemptions then you should consider reading a bit about it before even thinking of filing for taxes.

IRS offers some tax credits and exemptions in various scenarios and availing them can help you a lot with lowering your tax amount.

Read this article Credits & Deductions for Individuals

Also don’t just opt for standard deductions as individual deductions can sometimes add up as much more.

Filing under the Wrong status

Different Martial status has different tax filing ways and different advantages and disadvantages according to marital status.

Different Martial Status are Single, Married filing jointly, Married filing separately, Head of household or qualifying widow(er).

So take a note of that before filing your taxes.

Final Words

So, We hope that we were able to pin point some of the problems you were making during your tax filing process and also were able to solve them.

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