Unofficial Tax Guide

It is estimated that each year thousands of individuals make a mistake when preparing and filing their taxes. This occurrence is something that is not uncommon and the majority of mistakes will not cause trouble for a taxpayer; however, a mistake can pose a risk of delaying the arrival of a tax refund or you could pay more taxes then you actually owe.

There are three main ways to have taxes prepared. An individual can prepare their own paper taxes, use tax software program, or have a tax professional prepare them. Each and every one of the previously mentioned tax preparation ways have the change of errors being recorded. Even with a large amount of training and experience it is not uncommon for a professional tax preparer to make an error when filing a tax return for a customer. Tax software programs are available for purchase online or at most major retail stores. A tax software program is likely to verify all mathematical equations; however, this verification will not help if the wrong information was accidentally entered into begin with. Even though mistakes are still able to be made with a professional preparer or a software program, individuals filling their own paper tax returns have the highest chance of making a mistake.

Although making a mistake on a tax return may be an accident, it can cause a tax refund to be delayed a significant amount of time. There are many common mistakes that taxpayers make when filing their taxes; however, many of these mistakes can be corrected with little time or effort.

The IRS generally provides tax payers with a pre-filled pull off label. These labels will contain the name and address of a taxpayer. Using the provided label allows most tax returns to be processed at a quicker rate of speed. If a taxpayer has not been provided with a label or cannot use theirs, it is alright if the information is handwritten. It is important to remember that all handwritten information must be legible and easy to read. If a tax return cannot be read then it cannot be processed.

When a paper tax return is filed the W-2 form or forms are required. If these forms are not attached as requested a tax return can be delayed or even denied. Ensuring that all of the necessary attachments, including W-2‘s, are attached will save time and allow a potential tax refund to be processed at quicker rate of speed.

Another common mistake that is often made when filing taxes includes providing the wrong information for the direct deposit of a refund. When a tax payer wishes to have their tax refund deposited into their checking or savings account they must provide their bank routing number and account number. Providing the wrong numbers can prevent a refund from being directly deposited or the money may accidentally end up in another individual’s account.

Before mailing in a paper tax return it is important to verify that the forms are all properly signed and dated. Although signing a tax return may sound simple enough it is something that a large number of taxpayers forget to do. The best way to avoid making a mistake when filling a tax return is to double check all personal information and mathematical calculations.

If you choose to file your taxes online with TaxEngine.com, we will double-check your figures for you and make sure you’re not making any of the most common tax filing mistakes.