Ten tax tips to avoid costly mistakes

Hopefully, these ten tax tips will provide you with an accurate and cost efficient filing of your 2014 income tax return.

by: Taxpertise

We’re rolling into the April 15 deadline very soon. Hopefully, these ten tax tips will provide you with an accurate and cost efficient filing of your 2014 income tax return. Keep in mind that mistakes made on a tax return can cause refund delays because it takes the IRS longer to process your tax return. Some mistakes may cause your tax return to be rejected during the electronic filing process. And many other errors can flag you for audit or cost you penalties.

Here are ten tips to make this tax season less stressful:

  1. Make sure that all Social Security numbers for you, your spouse and your dependents have been entered accurately and as shown on the social security cards.
  2. If your dependent had income and filed a tax return but still qualified as your dependent, make sure he or she checked the applicable box(es) on line 5 of Form 1040-EZ to indicate that he/she is being taken as a dependent on another person’s tax return. Otherwise, your tax return will be rejected for e-filing. You may have to file an extension for your tax return then amend your dependent’s tax return, allowing eight weeks for processing before filing you tax return.
  3. Are you using the correct filing status? If you are single you may qualify as Head of Household. Then again you may not. Use the Interactive-Tax-Assistant on the IRS website to determine your correct filing status. It makes a difference in how much tax you will pay.
  4. Make sure the names on the tax return match exactly to the Social Security cards. Don’t use nicknames; use given names as shown on the Social Security card otherwise, you risk rejection of the electronic filed return thus delaying your refund.
  5. Check your math! Even if you are using tax software, math errors can occur. For example, you list your charitable contributions on Schedule A for a total of $2000. But when you run a tape off your cancelled checks, it adds up to $1,500. Find the discrepancy and correct it.
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