Tax season is fast approaching, so you may find yourself with some important tax questions. This article will cover some of the pitfalls of this process to make sure that you get the most out of your taxes this year.
Common Tax Filing Mistakes
Tax Filing Mistake #1: Filing Too Early
Don’t file too early! You may be eager to file your taxes to get your return as soon as possible, but filing before you have all your documents can actually cause delays in getting your return. It’s best to be patient and ensure that you have all the documents that you need for submitting your taxes.[1]
Tax Filing Mistake #2: Not Having Your Documents Together In Advance
Gather up all the documents you’ll need beforehand. You’ll need to know your own social security number, the social security number of your dependents, and receipts if you are planning on itemizing your deductions. You also may need some of the following documents[2]:
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- A W-2 if you are still working.
- A 1099 for other income (such as dividends or interest).
- A 1098 to report mortgage interest you paid.
- A W-2G if you have any gambling winnings to report.
Tax Filing Mistake #3: Your Information Isn’t Accurate (Yes, You Should Double Check Your Name, Too!)
Make sure your social security number is accurate on your forms. Your social security number is very important when the IRS is identifying you and your records, so you should double- or triple-check that that information is accurate on your paperwork.[3]
Similarly, make sure that your name is spelled correctly and matches the social security number that you provided exactly. The name on your social security card is the exact name that you should be using when filing–the IRS uses that name and your social security number to find your records.[4]
Make sure that the numbers you are entering are accurate. It can be easy to mistype or miswrite numbers when you are dealing with so much information. And tax software can make it feel easy and seamless to enter all the info, but make sure that you don’t put in the wrong numbers![5]
Related Reading: Essential Tax Deadlines: A Year-Round Tax Planning Calendar for Individuals and Businesses
Tax Filing Mistake #4: Not Taking a Break
It can be important to step away from your tax documents every now and then so that you don’t burn yourself out. It can be much harder to see errors if you’ve been staring at something for a while. So… step away, take a break, do something you like, and then take another look and ensure that your info is accurate.
Tax Filing Mistake #5: Not Crossing Your Ts or Dotting Your Is… Literally.
Make sure you sign your documents! This may seem obvious, but a tax form is not valid without a signature, and it can be easy to forget.[6]
Related Reading: 2023 Guide to Tax Planning
In Conclusion
As you can see, accuracy is the most important thing when it comes to tax documents. If you are serious about improving not only how you handle your taxes, but also how you handle your finances in general, reach out to us for a complimentary review of your finances.
