Finance

Mistakes You Need to Avoid During Individual Tax Preparation

Tax Services
Written by lavinandassociates

It is normal to make mistakes, but making errors on your income-tax return is something that can cost you heavily. It can lead to the delayed refund, increase in your tax bill, or can even turn out to be a red flag for an audit. These reasons make it necessary for you to double-check your return before actually filing it. Want to know by what other ways you can put a stop to your worries related to aftermaths of such tax mistakes? Keep reading!

1. SIMPLE SLIP UPS

Several mistakes related to tax-return are quite basic. Hence, be sure that you enter the accurate details, including name, address, and also the Social Security number for the names you have included on the return. Another common thing that you can make a mistake in is adding the correct details, but doing it on the wrong line. So it is essential for you to go through the return line by line before filing it.

2. CLEAR UP CONFUSION

It is crucial for you to make use of the correct filing status, and in the case you are not sure about which is the right one for you, you can research about it or approach a professional such as CPA firms in New York for such tax-related queries. Once you have found your qualified dependent(s), confirm that you have double-checked the correct exemption boxes for the personal and dependency exemptions.

3. CORRECTLY CALCULATE DEDUCTIONS AND CREDITS

If you are making any claims for credits, let’s say dependent care credit, you are required to follow all the instructions carefully. You are also needed to verify whether you have completed the required forms or schedules. For standard deductions, check whether it is the correct one that you are claiming.

4. CHECK THE MATHEMATICAL ERRORS

Mathematical errors in the preparation of the tax return are quite common. For instance, you had to write 3, but you accidentally wrote it 8, this would make an overall impact on your calculations. Thus, double-check whether you have transposed any numbers or have calculated them correctly or not. Also, make sure that you use the right column on the tax table while figuring the tax.

5. CHECK THE FINAL DETAILS

Don’t try to be in so much hurry for finishing your return that you skip some final and simple steps. If it is a paper return, ensure that you have signed the return and dated it. Attach each Form 1099-R showing federal tax withholding and also the Copy B of every Form W-2 received from the employers. Double-check the major details before actually sending it.

THE FINAL WORDS

Apart from the above suggestions, don’t forget to attach other essential forms and schedules in a proper number sequence, and make a copy of all necessary attachments for your own records. However, for professional advice on individual tax preparation, it is suggested that you should contact the CPA firms in New York City.

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