You could be among the 90% of American taxpayers who are going to get tax refunds this year from the IRS. Although you might be tempted to blow the money on a shopping spree or a holiday, don’t forget that the economy has still not recovered fully. Spend your tax refund wisely so that you get maximum benefit out of the money. Here is some advice on spending your tax refund money. [Read more…]
Common Errors to Avoid When Filing Your Tax Return
The tax forms that get filled out each year can be rather complicated, but people are still hoping to be able to get as much cash back on it as they can. Many depend on that money to be able to meet bills, especially after the winter has been so cold. Here are some common mistakes on 1040 tax forms that can be avoided to help get your tax refund back faster.
Enter All Tax Data Correctly
Many times people simply enter the wrong information, or fail to enter the information at all, on their tax forms, which means that no credit can be given, more information has to be requested, or the tax credit goes to the wrong person. This can be avoided simply by going over your tax forms carefully to ensure that everything is correct. If you are married or separated, be sure that you agree on your filing status in advance to keep matters simple and easy for the IRS to sort out.
Incorrect Calculations
This is a common and yet simple mistake that many make. The numbers just don’t add up because of simple addition or subtraction errors. If you use tax software, it should eliminate most of this problem, because it will do the math for you. All you need to do is to enter in the right numbers in the right place.
Improper Tax Deductions
Tax deductions have to have receipts, and you have to be eligible to claim them. Tax deductions can be a very powerful tool to ensure that you get more back from the government, but be sure that you have the right to claim them, and keep them realistic, too. If you have been reimbursed for some of those deductions, be sure that those numbers show up, too, or it could be tax fraud.
Incorrect Social Security Numbers
In order to get the credit for your tax payments and the tax refund you want, it is necessary to ensure that social security numbers of all people on your tax forms are correct. An error here may mean that someone else gets the credit. Also, if someone has stolen your SSN, then you will probably have problems with your tax payment, and getting a tax refund. The problem will have to be sorted out. Avoiding this problem may be as simple as filing as early as you can – hopefully before the other party does.
Wrong Bank Account Information
If you file taxes electronically and want to get your tax refund deposited directly into your bank account, be sure to supply the correct bank account information. Both state and Federal taxes need the right number to get it to the right place. Double check all your tax information, use an online tax calculator, and you will soon have the deposit where you want it.
