With the tax season in full swing, this is a good time to remember five common mistakes that people make when they file their tax return.
Information That Is Wrong or Missing
When you prepare your return, triple check to make sure that you have filled out these fields and the information is accurate:
- Social Security numbers:Every SSN on your tax return should appear exactly as printed on the Social Security Card.
- Misspelled names:The same principle applies here—all names must appear as written on the Social Security card of the person.
- Incorrect filing status:This information indicates whether you were married or single on December 31, 2020, and determines the amount of tax you should pay. To learn more about filing statuses, take a look at this previous post. You can also use the IRS Interactive Assistant to figure out your correct status.
- Incorrect bank account numbers:Your routing and account numbers should be accurate, so you can get your refund as soon as possible.
Let’s admit it: Math is not everyone’s strong suit. That’s why you should pay special attention to the math on your tax return. Using tax software or working with a professional tax preparer greatly reduces this type of mistakes. However, every taxpayer should always double check the math on their return.
Mistakes in Credits or Reductions
There have been many changes to tax law due to the COVID-19 pandemic, so the odds or making this type of mistake are higher than usual. With options available that include earned income tax credit, child and dependent tax credit, and recovery rebate credit, it’s advisable to seek assistance from a professional to determine which are the options you qualify for.
This is particularly important because an unsigned tax return isn’t valid. There are some exceptions, as in the case of members of the armed forces or taxpayers with a valid power of attorney. But generally speaking, all taxpayers must make sure that their return is signed.
ITIN stands for Individual Taxpayer Identification Number, and as its name suggests, it helps the IRS keep track of every individual taxpayer. If your ITIN expired, the IRS will treat it as a return filed on time, but it won’t apply any exemptions or credits. Once you renew your ITIN, the agency will process your return normally.
More Tips About Taxes
These are some previous posts with useful tips to help you navigate with confidence the world of taxes:
- These are your options if you didn’t file your taxes on time
- How to start preparing your 2020 tax return
- Do you know what is your tax filing status?
- 4 Tax-related scams to avoid
- Expecting a tax refund? Here’s everything you need to know
- Remember this important thing when you get your Economic Impact Payment
Contact the Tax Experts at Delgado’s Insurance
If you are looking for assistance with your 2020 tax return, contact our experts at Delgado’s Insurance. Our mission is to help you make sense of your options to reduce your liability and maximize your deductions while staying compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (firstname.lastname@example.org), or through our social media accounts (Facebook, Twitter) to get a free quote and learn more about our wide array of services.