Below is a checklist of common errors when preparing a tax return listed in Tax Topic 303 from the IRS website
- Did you use the peel–off label and enter any corrections? If you used the label, did you enter your social security number in the space provided?
- If you do not have a label, or there are too many corrections, did you clearly print your name, social security number, and address, including zip code directly on your return?
- Did you enter the names and social security numbers for yourself, your spouse, your dependents, and qualifying children for earned income credit or child tax credit, exactly as they appear on the social security cards? If there have been any name changes be sure to go to http://www.ssa.gov/ or call at 1–800–772–1213.
- Did you check only one filing status?
- Did you check the appropriate exemption boxes and enter the names and social security numbers exactly as they appear on the Social Security Card, for all of the dependents claimed? Is the total number of exemptions entered?
- Did you enter income, deductions, and credits on the correct lines and are the totals correct?
- If you show a negative amount on your return, did you put brackets around it?
- If you are taking the standard deduction and checked any box indicating either you or your spouse were age 65 or older or blind, did you find the correct standard deduction using the worksheet in the Form 1040 Instructions or the Form 1040A Instructions?
- Did you figure the tax correctly? If you used the tax tables, did you use the correct column for your filing status?
- Did you sign and date the return? If it is a joint return, did your spouse also sign and date the return?
- Do you have a Form W-2 from all of your employers and did you attach Copy B of each to your return? File only one return, even if you have more than one job. Combine the wages and withholding from all Form W-2's, on one return.
- Did you attach any Form 1099-R that shows tax withheld?
- Did you attach all other necessary schedules and forms in sequence number order given in the upper right–hand corner?
- If you owe tax, did you enclose a check or money order with the return and write your social security number, tax form, and tax year on the payment? Refer to Topic 158 for more information, and
- If you are due a refund and requested direct deposit did you check the routing and account numbers?
- Did you make a copy of the signed return and all schedules for your records?
A few of the more common errors are:
- Incorrect or missing social security numbers.
- Incorrect tax entered from the tables.
- Errors in figuring the child and dependent care credit or the earned income credit.
- Missing or incorrect identification numbers for child care providers.
- Withholding and estimated tax payments entered on the wrong line
- Math Errors. Both addition and subtraction.
- Not signing and dating your return.
- Forgetting to include interest, dividends and capital gains.
- Not including all of the required forms.
- Using the incorrect forms, especially using the 1040EZ when the longer form might cut your taxes.
- Not filing on time.
- Not requesting an extension, if needed.
A lot of the errors list above could be avoided by using a tax preparation service (H&R Block, Liberty Tax Service, Jackson Hewitt)*, tax software (TurboTax or Tax Cut)* or a free online filing service (TaxAct)*. The best thing about using one of these methods is that they take care of doing all of the math for you.
One of the things I always hated was completing the secondary worksheets or needing to reference another IRS publication to determine what to enter on your tax forms. Using a tax service, tax software or an online filing service does all of this work seamlessly. Most importantly, if you have all of your records together, using any of these methods above will save you time.
For my money the cost of the tax software is well worth the expense. If you watch the ads carefully you can get the tax software on sale and walk out with some free stuff.
If you find that you are receiving a big refund, or have a large tax payment to make, see my post on the W4 Withholding Calculator. This posts talks about how to calculate the amount you should have withheld from each paycheck in order optimize your tax payments.
Useful Links:
Free File Alliance Online Tax Preparation Companies
*This is not an endorsements for any specific tax product or filing method.
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