“To err is human.” We all make mistakes. Some mistakes are more costly than others. When it comes to doing your taxes, that’s one area where you don’t want to make a mistake.
The bad news is that it can be easy to make a mistake on your taxes if you aren’t careful. The good news is that so long as you take your time and do things right you should have nothing to worry about. At Hacker Accounting we know all about the mistakes people make on their taxes. Here are the five most common mistakes people make when filing their taxes.
The IRS won’t process your return if it’s missing a signature. That includes e-filed returns! Make sure you sign and date your returns. And if you’re doing a joint filing, both you AND your spouse must sign it.
Wrong Social Security Number
Your return also needs to have your social security number on it. Putting down the wrong SSN or not putting one at all is a very common mistake people make with their taxes. Your return will not be accepted without the correct SSN written on it.
Don’t double-check your math: Triple-check it! Few things can turn a routine tax return into a giant headache faster than adding or subtracting the wrong figures. Take your time when doing your return and make sure that all the numbers you’re entering are accurate. Especially when you’re counting up your deductions. If there’s any complex math you need to do for your return and you don’t feel up the challenge, don’t hesitate to ask for help. It’s better to get an assist than have to pay a penalty later cause you goofed the math.
Filing Status Errors
Make sure you’re using the proper filing status. Putting yourself down as “Head of Household” when you’re single could bring you trouble that you don’t need. Check the IRS website: They have tools and FAQs that can help you figure out your correct status. Most tax software also makes it easy to work out the right status for your e-file.
Being Too Aggressive With Deductions
Write off too many things at your own peril: Too many deductions can be a one way ticket to an audit. Make sure that you’re making deductions that are appropriate and fall within the letter of the law. Know what you can write off as a legitimate business expense. If you bought a new computer for your home, you can’t write that off as a business expense just because you occasionally answer work emails on it. And unless you can prove that Armani suit you bought is JUST for work and is a necessity for your business, you won’t be able to write off.
Related: 5 Misconceptions about Tax Season
Got any questions about your taxes? We can help with that! Give Hacker Accounting a call at 602-375-5251.