Don’t Make These 5 Tax Mistakes This Year

With the tax deadline fast approaching, millions of Americans are gathering their receipts and looking for ways to maximize their refund. Unfortunately, a simple error can delay your refund or mean that you leave money on the table. The following are the most common tax-filing errors according to the IRS.

Missing or Incorrect Social Security Numbers

Most of us know our Social Security number by heart; however, it is very easy to transpose numbers or make a typo when entering the number. When it comes to other family members, you should not rely on your memory since you use those numbers less often. Always check each social security number against the actual card to make sure that it is correct. You will also need a Social Security number for each child that you claim as a dependent.

Incorrect Name

The IRS can flag your return if the Social Security number on the return does not match the name associated with the number in the Social Security Administration database. In most cases, this is the result of a typo on the return; however, it can also occur after a marriage, divorce, or other legal name change. It is important to notify the Social Security Administration after any type of name change.

Error in Filing Status

If you have had a change in your family during the past year, your filing status may have also changed. An example of a filing status error would be checking “head of household” when the status should be “single.” The IRS website has an interactive tool that will help you choose your correct filing status.

Mathematical Errors:

This is where using tax preparation software comes in handy. The software does all of the addition and subtraction for you to eliminate math mistakes. If you prefer pen and paper, be sure to have a calculator nearby and triple check all of your numbers.

Overlooking or Miscalculating Deductions or Credits:

Some of the most frequently overlooked or miscalculated deductions include the Earned Income Tax Credit, Child and Dependent Care Credit, and the standard deduction. Tax preparation software will prompt you with questions to determine which deductions and credits apply to your situation. You can also consult the IRS website for help determining if you qualify for certain deductions or credits.

Finally, remember to double check your bank account number and routing number if want your refund direct deposited to ensure that it ends up in the right account.

William Doonan is a tax law and legal expert in New York.