Are you preparing for tax filing? There are a few things to keep in mind for tax preparation in Kearny, NJ, and some of them are common errors that you should avoid. Making these mistakes will only bring you hassle and confusion, or worse, you could get into trouble. That is why you should always be alert and careful when preparing for your tax filing.
How to Avoid Common Tax Filing Mistakes
Here are some of the common tax filing mistakes you should avoid and some ways to avoid them.
- Filing Tax Return Too Early
You may want to file your tax return early in the tax season and receive your tax refund as soon as possible. However, if you rush tax filing without completing all the needed tax documents, this can cause errors that may delay your refund even more and get you into other trouble.
To avoid this happening, make sure that you review all your tax documents carefully first. This way, you will be aware of the potential adjustments needed. You should also consider consulting a professional tax preparer if you have any questions or concerns.
- Underreporting of Income
You know that all income is taxable unless it's specifically excluded, like certain gifts and inheritances. You should be aware that the income you earn will be reported to you and the government through an information return, be it Form 1099 or W-2. If the income you reported failed to match the IRS's records, you could face problems in the future.
So to avoid this from happening, make sure that you include your income from all of the following forms that apply to your situation:
• 1099-B • 1099-DIV • 1099-MISC
• 1099-NEC • 1099-R • Form 1099-INT
• Form SSA-1099 • Form W-2
- Blowing the Basics
One of the common tax filing mistakes to avoid, but one that most tax filers still commit, is not knowing the basics. When you say “blowing the basics,” it means making mistakes on the basics you should accomplish. Examples are misspelling your name, writing the wrong numbers on your birthdate or ID number, and not filing according to your status.
To avoid forgetting the basics, make sure to always double-check the spelling of your name and the numbers you have written before submitting your forms. You should also ensure that you select the correct filing status for your situation.
- Making Mathematical Errors
Filing a tax return with mathematical errors can be a hassle and extremely costly for taxpayers, as the IRS may charge you expensive fines and interest charges if you make any mistakes on your tax return. You should resolve errors like this with the IRS, although there would be a delay in receiving your refund. If you fail to fix these mistakes, they can cause more serious issues, like legal action.
To prevent making mathematical errors on your tax return and to experience hassle-free tax processing, it would be best to use tax preparation software or work with a professional accountant.
- Claiming of Unsupported Deductions
The IRS always keeps a careful eye on certain tax deductions. This is to discourage abuse, especially if the deduction is large and suspicious, an example of this is a large donation to a charity.
To avoid speculation against your deductions, make sure to keep thorough records to support the deductions on your tax return. You should also ensure that the government recognizes any organization that you donate to as a tax-exempt entity if you often make charitable donations.
These are some of the common mistakes taxpayers, like you, often commit and some ways to avoid them. If you want to make sure that you won’t make any of these mistakes when filing for tax returns, the best option would be to hire a professional who can help you with your tax preparation in Kearny, NJ. It is best if you hire Nicholas J. Coco to help you. Call us today at 201-955-3100 to ask for assistance.