Filing taxes is complicated, and you must be careful when filing your tax return. Even minor errors can result in the IRS rejecting your return, which can delay the refund, or result in penalties and interest charges. Common tax-filing mistakes to avoid a rejected tax return include:
Entering incorrect personal information: The most common mistake taxpayers make is entering incorrect personal information such as name, Social Security Number, address, and date of birth. The name on your tax return should match the one on your Social Security card. Getting the name right is vital because the IRS accesses the Social Security Administration (SSA) names database and matches the names on the returns. You must contact the SSA if you have changed your name, got married, or divorced.
Errors in calculation: Math errors are another common mistake that can lead to a rejected tax return. Make sure to double-check your calculations before submitting your return. Consider using tax software or an online tax calculator to help reduce the risk of calculation errors or consult tax professionals.
Filing for incorrect tax year: Ensure you are filing for the correct tax year. If you file your return for the wrong tax year, the IRS will reject your tax return.
Fail to report all income: Another common mistake is failing to report all your income. Remember to include all your income, including tips, bonuses, and freelance work. Use the W-2 or 1099 Form to report these incomes.
Missing or inaccurate social security numbers: Make sure that the Social Security Numbers you enter for yourself, your spouse, and any dependents are accurate and match the information on their Social Security cards. Any discrepancies will result in a rejected tax return.
Claiming incorrect deductions and credits: Deductions and credits can be complicated, and taxpayers often make mistakes when claiming them. Make sure to carefully review the eligibility requirements for each deduction and credit you are claiming.
Fail to sign your tax return: Your return is incomplete until you sign and date it. Failing to sign your tax return will result in a rejected return.
Mail your tax return to the wrong address: You must mail your tax return to the correct address. The address for your tax return will depend on your state of residence and the type of return you are filing. The IRS website has a list of addresses for each state. According to Forbes, it’s best to e-file your return for speedy processing and refunds.
Fail to file state taxes: If you live in a state with income tax, make sure to file your state tax return as well. Failing to do so can result in a rejected tax return.
Fail to report health insurance coverage: Starting in 2014, the Affordable Care Act requires taxpayers to report their health insurance coverage on their tax returns. Failing to do so can result in a rejected tax return.
In conclusion, avoiding these common tax-filing mistakes can help ensure IRS accepts your tax return. It is always a good idea to double-check your return before submitting it. If you have any questions or concerns about your tax return consider consulting a tax professional.