Jan 27, 2008

Most common errors on tax returns- they are simple to avoid...

The most common errors on tax return preparation are not errors of tax law or whether a deduction is allowed or not- they are errors that can be easily avoided. Avoiding these errors allows the IRS to process your return (and hopefully your refund) faster.

Here are the most common errors:

1. The social security numbers listed on the return do not match the Social Security Administration records (i.e. your social security card). This is common in recently married or divorced individuals or new children.
2. Tax is not computed correctly from the tax tables- check this twice, or three times to make sure you did not err.
3. Incorrectly computing the child and dependent care credit or the earned income credit. Check the form several times- especially if you are making other changes to your return.
4. Missing or incorrect identification numbers for child care providers for the child and dependent care credit- check the statement you recieve from your provider for accuracy of face a disallowance of this credit.
5. Withholding and estimated tax payments entered on the wrong line- your Form W-2 withholding and your estimated tax payments need to go on the correct line or this will delay processing.
6. Simple Math Errors of addition and subtraction- tax programs would help this- but mostly- it is carelessness that the IRS will correct to your surprise.

I always recommend that you never prepare your own tax return and if you do, have another person look at it before you file it- they will catch most of these errors if they do their job diligently. If you want to best insure that your return has no errors, hire a competent tax professional.

1 responses:

Beckie January 28, 2008 at 8:45 PM  

If more people would just heed this advice--especially the part about using a tax professional to do their returns!

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