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Tax Time Deadline Is Fast Approaching - Avoid These Common Tax Prep Mistakes
In the rush to get your taxes done, make sure you look over your tax return one last time to identity these common tax preparation mistakes. First of all, double check your Name, Address, and Social Security Number. Ditto for your spouse and dependents. Any typo will cause a mismatch in the IRS database and result in your electronically filed tax return being rejected, or received a computer-generated audit letter if you filed on paper. Next, check that you received ALL your W-2s and other income statements (such as 1099 forms). It's frustrating, I know. Sometimes just glancing through your checkbook, personal finance software, or pay stubs could be enough to jog your memory. If it looks like you owe, make some last minute tax changes. For example, how much less will you owe if you contribute to a traditional IRA? Can you itemize? Did you correctly add up all your tax withholding? If you still owe, think about how you are going to pay the IRS. I suggest paying off your tax bill by the April 15th deadline to avoid IRS penalties and interest. You can even pay your taxes by credit card. After that, adjust your withholding so that you have more taxes withheld from your paycheck so you won't owe next year. Maximize your relationship with your tax professional. A tax preparer can help you figure out how many withholding allowances you should have, or whether a traditional or Roth IRA is more advantageous for you, or offer some ideas about tax strategies for your particular situation. Also make sure that you:
Checked only one filing status
Sign and date the tax return
Do not cross out any of the "legalese" language above the signature line
Attach all W-2 statements and any 1099-R showing federal tax withholding
Double check your math
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