A Cyber Station for Daily Finance

TAX

Don’t Screw Up Your Taxes in 2016 – Some Deadly Mistakes to Avert

Don’t Screw Up Your Taxes in 2016 – Some Deadly Mistakes to Avert

It’s time for the tax season again and you will most probably need to file your tax returns in no time. Tax has always been a complicated subject and this is why both individuals and business firms hire an accountant in order to give him all sorts of tax responsibilities and shrug off the herculean task. There are lots of ways in which you have to reveal your personal information and also keep some information safe while filing your tax. While you may find lot of articles which speak about the ways in which you should file your tax returns, not much is said about how you could screw up the entire process. Keeping that in mind, have a look at some of the costly mistakes which you should avoid in 2016 while preparing 1040.

tax

  1. Mathematical mistakes: If you see that the numbers of your tax return is not adding up, that would increase the chances of an audit. The IRS gets a copy of all W-2 and 1099 forms which have been mailed to you and hence they always check whatever you are supposed to report. If you have 3 W-2s, one for $20,000, one for $30,000 and one for $15,000 and if you make the mistake of reporting the income as $55,000, this can definitely increase the chances of an audit.
  2. Spelling errors: The computer of the IRS might give back returns if there are misspelled words, particularly if the names don’t match with one another. If you spell your name Matt one year and Mat in the next year, this will also create unnecessary issues.
  3. Wrong bank details: You are given the option of requesting that your tax returns are directly deposited into one bank or more than one bank account. Ensure double-checking the account numbers which you enter and you should be aware that incorrect bank details might make your refund disappear.
  4. Wrong filing status: “Married filing jointly” and “single” are the most common 2 statuses but there are 5 other options from which you can choose. One most common habit is to file as single instead of being the head of the family when you have a qualified person already living in your home. This might cost you a bit of your dollars as the head of the families qualify for an extra $2950 deduction over singles.
  5. Not remembering to report all income: It is tough to forget the income that you receive from your main job but the smaller W-2s and 1099s are easier to slip off your mind. If you’ve worked for a part-time job, you might not even remember to look for that W2 and make the blunder of filing your tax return without the details. Be sure that the IRS won’t forget about that money that you earned.

Hence, if you don’t want to screw up this tax season, you should avert committing the above mentioned blunders which could unnecessarily trigger an audit.

Next article The Frugal Fam: Budgeting Tips for Growing Families
Previous article Important Things to Do Before You Apply for a Loan

Related posts

0 Comments

No Comments Yet!

You can be first to comment this post!

Leave a Comment

Your data will be safe! Your e-mail address will not be published. Also other data will not be shared with third person. Required fields marked as *