Filing your taxes is extremely important, and making a mistake when doing so can lead to serious repercussions. With all of the information that needs to be filled out, people are bound to make errors. It’s important to make sure you’re not one of those people. Here are a fews tips to help you avoid some common tax mistakes:
- Check if you need to make tax penalty payments
Did you have health insurance last year? If you did not, then make sure that you make your tax penalty payment for the year. If you did have health insurance and you used the state or federal health insurance marketplace, make sure you claim any received premium tax credits using Form 1095-A. If you were uninsured last year, the penalties grow to 2 percent of your annual household income.
- See if you can claim tax credits for attending college
If you or any of your dependents attended college last year, make sure to claim any educational tax credits that you are eligible for. This can be achieved by completing Form 1098-T. You can receive these credits if you attended a qualifying college or university.
- Make sure you report all reportable income
If you don’t report all of your reportable household income, the IRS will see this as a red flag. Make sure you’ve gathered all applicable documents including 1099-MISC, 1099-DIV, W-2s, and any other income you have received. Your employers, your investment and banking institutions, and other financial organizations send all of these documents to the IRS. Don’t try to hide a bank account or document, because the IRS will find out about it. Omitting documents will further delay your return, or any funds that are owed to you. If some of your earnings go unreported, you may owe more than you originally reported, thus resulting in penalties and interest over time.
- Complete your taxes on e-file
The IRS has found that people who complete their taxes on paper are 20 times more likely to make mistakes than people who use e-files. If you file electronically, your computer will be able to catch simple typos in your name, social security number and other information. Make sure you always double check the social security numbers of you and any family members being claimed or reported.
- Make sure the bank routing information is correct
Before you hit the submit button, you’ll want to double check the bank routing information. If you did make a mistake and you have already sent the filing to the IRS, you can track your filing down by calling the IRS at 1(800) 829-1040. If you aren’t able to catch it in time, rest assured. In the event of bank routing information errors, the IRS will send a paper refund check. Your refund may take longer to arrive, but you will eventually receive it.
When you’re filing your taxes, it is very important to pay attention to detail. Many people make mistakes when filing their taxes, but if you remember these helpful tips, you can ensure that you can file your taxes without making any errors.
