Common Mistakes on Tax Returns

In the day of electronic tax filings, people are still making mistakes on IRS forms. Some are completely inadvertent, while I suspect others are intentional. The IRS accounts for these mistakes and often corrects them in house. Sometimes it costs taxpayers a fair amount of money. Other times, the IRS will catch the mistake and need to send more money to the taxpayer. The latter tends to happen more than the former, but is a pleasant surprise. The list includes:

• Wrong names

• Social Security Numbers being wrong or mixed up.

• Wrong filing status – very common on returns claiming the earned income tax credit

• Errors or improper use in using or figuring tax credits

• Math

• Unsigned forms

• Wrong PINs and

• Healthcare reporting errors

The last item, healthcare, tends to be a large issue as the reporting is new and people are being made to guess their annual income ahead of time. This is a guess that most Americans are getting wrong and are getting the reconciliation wrong as well.

If you are having difficulty with your taxes, please come in and talk sometime between here and April 18. We also do estate planning, business sale closings, and business valuations. Our phone number is (618) 997-3436.