4 Common Income Tax Mistakes to Avoid

Ugh! Tax season. I don’t know about you, but I’ve yet to get started compiling my tax information from 2015 and I’m dreading doing it. I don’t even do my own taxes, I hire an accountant and tax prep firm to help me with my income tax return. But even though I don’t fill out all the forms myself, I always check things over before I sign the dotted line, and you should too.

Tax professionals can make mistakes just as those who do their own taxes. Mistakes on tax returns are less common now that many people use tax preparation software as those systems are designed to catch mistakes, but there are still plenty of ways you can mess up your taxes. Here are 4 common income tax mistakes to avoid.

Common Number Errors

Depending on how complicated your tax return is, there may be several schedules needed in order to claim deductions or expenses on your return. One of the most common income tax mistakes is a simple and common number error. You might enter one number on the schedule, but enter a different (incorrect) number on another form of your tax return.

While working in a lending office for just over 3 years, this is a mistake I saw on the tax returns of several customers. After seeing this mistake first hand, I always check this on my return before signing it.

Math Miscalculations

Another common error I ran across while inputting information from customer provided income tax returns were math miscalculations. The numbers put into different lines of a schedule would all be correct, but at the bottom of the form these numbers wouldn’t add up. It pays to double check your math if you don’t use a software that does this automatically.

Missing Signatures

Although most people e-file their tax returns, they still have to be signed with a PIN number. The IRS won’t process tax returns submitted via paper documents or electronically if they aren’t signed. Don’t forget that both spouses must sign if you are filing a joint tax return.

Waiting Until the Last Minute

Although I haven’t started gathering up my tax information, I definitely won’t be waiting until the very last minute. Another common, and costly, mistake of filing a tax return is waiting until the last minute or missing the deadline. Luckily this year the deadline has been extended to April 18 instead of the usual deadline, April 15.

If you know you won’t have your taxes completed by April 18, make sure you file an extension by filling out Form 4868 by the deadline. This will give you a 6 month extension to finish and submit your tax forms. Filing this extension does not mean you don’t owe taxes on April 15. If you know you own money, make sure to send it in with your extension request to avoid late-filing and non-filing penalties and fees.

Tax season comes around every year, so we should be prepared for it, but many of us face these same mistakes year after year. This year you can make sure you avoid at least these 4 common income tax mistakes when you file your return.

Have you started working on your income tax return yet? Have you ever made any of these mistakes in the past?