Louisville Accountant and Tax Articles

Ten Common Tax Mistakes

Posted 2016-05-16

Ten Commonly Made Tax Mistakes

While most of these mistakes won’t land you in a jail cell next to Bernie Madoff they can cost you time and money.

  1. Not changing your name with the Social Security Administration after you marry or divorce. Consequently your social will not match your new name and delay your filing.
  2. Filing your return with the wrong filing status.
  3. Letting your dependent file his/her own tax return. They inadvertently claim themselves and then their parents can not claim them without preparing an amended return.
  4. Failing to report all income – Did you have forgiveness of debt, a second job or 1099s.
  5. Not keeping a copy of your tax return.
  6. If you have a dispute with the IRS do not try to settle the problem yourself.
  7. Not making the proper adjustments to your withholding through your W4.
  8. Not filing your return electronically. The advantage is we know the IRS has received your return and accepted it.
  9. Not filing your tax return on time or not filing at all. Even if you don’t have the funds to pay your tax liability you can file an installment agreement. Another option is to fill an application for automatic extension of time. There are 2 separate penalties. Failure to file and failure to pay.
  10. Not verifying that your direct deposit bank and account number are correct. It can delay your receipt of a paper check up to 8 weeks.

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