Common Self-Preparation Errors

We’ve all been there: We need our taxes done ASAP so we try to do them ourselves. Then we realize “Oops, I made a mistake!”….and then the panic sets in.

“How do I fix it??”

“Are the feds coming after me??”

SO, before you start preparing your return, here are some common errors to look out for.

• Inputting the incorrect personal information (name, address, social security number, etc.)

Yes, this may sound ridiculous, but it is not uncommon for someone to rush through their tax preparation and accidentally goof up this kind of information.

• Filing under the incorrect filing status

Make sure you know whether to file Single, Head of Household, Married Filing Jointly, or Married Filing Separately and make sure you know the rules that go with each.

• Forgetting to claim your dependents

No, seriously. We have had clients forget their kids (Honey, I Forgot The Kids On Our Tax Returns!). This is a great tax credit. Make sure you also know when you can no longer claim your children as a dependent and if someone like a parent or person you take care of can qualify as a dependent.

• Missing information reflected on tax forms

Make sure you have received ALL of your tax forms before you file. This includes income forms (1099s, W-2s, etc.), anything for student loans (1098-E or 1098-T), anything for health insurance (1095), etc. You can refer to the IRS website if you need any information regarding forms and what they mean.

https://www.irs.gov/forms-instructions

If any information from your forms belongs on the returns and is missing, the IRS will send you a notice.

• Missing Deductions

This is a HUGE one! We review returns all the time, either prepared by the client or prepared by a chain preparer, that are missing some of the most important deductions out there. You could be losing hundreds or even thousands of dollars by leaving off important deductions. Sometimes, people just aren’t sure what they can and cannot claim, and that’s what leads to the problem.

• Missing the tax filing or extension deadline

Here is a handy guide to filing deadlines most important to our clients:

https://imgur.com/a/q5z5L

Make sure to file an extension if you know you’re not going to meet the first deadline. Also remember that the extension extends your time to file, but NOT your time to pay. Penalties and interest will occur on the balance. Put any of these important dates in your calendar, so you don’t forget!

How can these mistakes be avoided or fixed?

• Be cautious and careful, be thorough!
• Have someone help you to make sure all records are accounted for.
• Hire a professional, especially if you’re staring at that return and feel overwhelmed. That is what professional preparers are for!