Forgetting the "Making Work Pay" Tax Credit
The Making Work Pay tax credit –– In 2009 and 2010 individuals can get up to $400 and married couples up to $800.
Using the Wrong Filing Status
Are you using the single filing status when you could be enjoying the standard deduction reserved for head of household or qualifying widow?
Not Double Checking
Even if you're using tax filing software, there can be errors. Signing an incorrect tax return can be as good as tax evasion in the eyes of the IRS.
Not Attaching Forms to the Front of the Return
If you're mailing in a paper return, attach your W2s and other tax forms to the front of your returns.
Filing a Late Tax Return
If you can't meet the IRS deadline, file a Form 4868 for an extension to avoid late filing penalties.
Not Signing and Dating Returns
Don't forget to sign and date the forms (and remind your spouse too). It's as good as not even sending in a tax return, if it's incomplete.
Not Reporting All Income
Don't leave out any income. Trust me, it's better to be honest right away. The IRS penalizes for inaccurate returns.
Claiming a Deduction Instead of a Credit
Sometimes itemized deductions results in a lower tax liability, and sometimes it doesn't. It's best to compare which reduces your tax liability the most.
Incorrect Bank Account Numbers for Direct Deposit
This is for obvious reasons. The IRS doesn't care if someone else gets your refund.
Labels: Tax Filing