Posted July 12, 2013 by Michael J. Kora in Hot Topics

Tips for avoiding costly errors on your tax return

Making blunders is a single of Americans&rsquo largest fears at tax time. A single error can delay the processing of your return or even lead to it to be rejected by the IRS. If that happens and you&rsquore entitled to a refund, get ready to wait.

Right now&rsquos sophisticated tax preparation merchandise make undertaking your own taxes excellent the initial time at an affordable value &ndash or even cost-free &ndash a reality for millions of Americans every year.

&ldquoOnline and downloadable solutions have every thing the vast majority of taxpayers need to file their taxes with comprehensive confidence,&rdquo says Jessi Dolmage, TaxACT Spokesperson. “Using do-it-oneself tax preparation application options drastically reduces the opportunity of errors, especially if you import final year’s return info.&rdquo

If you&rsquore carrying out your personal taxes for the 1st time this year or aren&rsquot capable to import last year&rsquos return, be specifically cautious to keep away from these typical errors.

*Every year, the IRS receives millions of returns with misspelled names and incorrect Social Safety Numbers (SSN), particularly those of dependents.&nbsp When processing your return, the IRS verifies names and SSNs on your return with the Social Security Administration’s database. If the details doesn&rsquot match, the IRS will notify you. Even though the errors are effortless to right, they could delay refundable credits for parents and college students, and refunds for the Earned Earnings Tax Credit.

*Report all your earnings. The IRS can effortlessly verify how considerably earnings you received based on your SSN and 1099 forms financial institutions are needed to submit. If unreported income is found right after the filing deadline, you could owe penalties and interest on the earnings.

*Because filing status determines many amounts on tax returns, the IRS has strict qualifying criteria for every single of the 5 filing statuses. If you don&rsquot meet all the requirements for the filing status claimed on your return, the IRS could reject your return. If you qualify for much more than one particular status, claim the a single resulting in the larger refund or less tax owed. See IRS Publication 501, Exemptions, Normal Deduction and Filing Info, for detailed info about filing statuses. Tax preparation programs simplify it all by guiding you by means of your alternatives and helping you select.

*Whether or not you&rsquore getting a refund or owe taxes, double check the routing and account numbers on your return. A single incorrect quantity can mean numerous extra weeks of waiting for your refund, someone else getting your refund, or your refund becoming sent back to the IRS.

*With hundreds of deductions and credits obtainable for the taking, it&rsquos simple to miss 1. The onus is on you as the taxpayer, not the IRS, to claim all the tax breaks you qualify for. Dolmage says that&rsquos one particular of the important benefits of employing tax preparation options. “The plan walks you through every single credit and deduction to support you get the greatest attainable refund,” says Dolmage. “All you have to do is answer straightforward questions.”

*Ultimately, file your tax return and pay any taxes owed by the April 15 deadline. If you need more time to file your return, file Form 4868 for an automatic six-month filing extension. However, maintain in mind you&rsquore nevertheless obligated to spend any taxes owed by April 15. Pay late and you&rsquoll incur penalties and interest fees.

Dolmage also says, “Yet another all-also-typical mistake is paying too a lot to do your taxes. High-priced options never equate to a larger refund. All taxpayers can prepare, print and e-file federal tax returns totally free at www.taxact.com &ndash no restrictions, no bait and switch.”

TaxACT Free of charge Federal Edition consists of all e-fileable forms for simple and complex tax returns. Regardless of how you filed last year, you can transfer information from last year’s return. Immediate, personalized help is obtainable each step of the way in the Answer Center, online at taxact.com and with Audit Assistant. Customers can also e-mail tax and audit concerns to TaxPayer Support Specialists for free of charge answers.

More tax tips are accessible at www.irs.gov. To understand much more about TaxACT and commence your totally free federal return, check out www.taxact.com.

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Michael J. Kora