With tax season well underway, you may find yourself putting off filing your taxes because of inconvenience or confusion over how to file. Though many tax professionals offer assistance with this endeavor, you may wish to remember that anyone could make mistakes when it comes to filing your taxes. If mistakes do go overlooked, you could face considerable issues with your tax return, ranging from unaccepted filings to potential audits.
Because a simple mistake could lead to unnecessary complications, you may wish to look out for some of the most frequent errors.
Because tax preparation involves several forms and numerous boxes needing just the right information, if a box lacks the necessary information or one enters the wrong information, your filing could face issues. These mistakes could come about due to simply overlooking a box or making a typo, which could happen to anyone.
Many individuals may consider math a weak point of theirs. If you fall into this category, attempting to follow the complex mathematical instructions on your tax forms may prove challenging. As a result, you could open yourself up to making errors that could affect your refund or owed amount.
Even if you enlist the help of a tax professional, one missed addition or subtraction instruction could cause a vast difference in amount results.
Missed tax exemptions and credits
Many individuals may know of a few tax exemptions or credits that could help them when it comes to lessening the amount of money they may owe or gaining a higher refund. However, you may qualify for more exemptions than you realize. If you miss out on these exemptions or credits, you may miss out on much-needed money.
Using the wrong forms
Though you must use one of three tax forms when filing your taxes, your income circumstances impact which form you use. Additionally, you may need to use additional forms if you choose to itemize your deductions or if you have business profits or losses. Therefore, you need to ensure that you use the right form or forms for your case.
By thoroughly assessing your income factors and double checking your tax forms, you may avoid many of these and other common mistakes. Unfortunately, even if you do feel confident in your filing, you could still face an IRS audit or other issues.
If you do end up in a situation where you may need to defend against an audit or handle other tax disputes, you may wish to consult with an experienced California tax attorney.