Financial Planning – Don’t Get Caught by Common Post-Tax Season Mistakes
While tax season may be largely over, you could still be coping with the fallout from errors on your return. This may be leading to a delay in your refund, or it may simply be giving you an IRS-sized headache. The following are some of the most common mistakes Americans make when filing their taxes, and some suggestions for how to avoid them.
Tax time is stressful, so it’s unsurprising that many of us may make mathematical errors of calculations on our tax returns, particularly if doing taxes on paper forms. While it’s important to double-check all calculations, tired brains can let errors slip through.
How to solve the problem: Consider using a tax software solution that will make calculations for you and check your work or hire an accountant to crunch the numbers for you.
When you file your taxes, the federal government is looking for a precise match on your identity (and not, for example, your maiden name if you don’t use it legally). It’s important to use your name precisely as it appears on your Social Security card.
How to solve the problem: If you have recently made a change to your name, notify the Social Security Administration as soon as possible. If you’re using tax software, ensure the new year’s software has access to last year’s info so it can repopulate the information precisely as it appeared last year.
Bank Routing Number Problems
If your tax refund has failed to materialize in your bank account, check to ensure that you entered your bank’s routing number and your account numbers correctly. With the predicted slowdowns and bottlenecks due to staffing shortages at the IRS, it’s possible that you simply haven’t been contacted about the error yet.
How to solve the problem. Double-check the numbers if you’re entering them manually. If you’re using software, make sure that the solution has correctly auto-populated the numbers from last year.
Social Security Errors
Once upon a time, many taxpayers received forms with social security numbers already printed. In an error of data privacy, this is no longer the case, and it’s a common mistake for filers to forget to include their social security or tax identification numbers when they file.
How to solve the problem: Ensure your social security number or tax ID number is present and correct on all your forms, whether printed or digital.
By the time we finish with the onerous tax filing process, most of us are in a hurry to mail or e-file our taxes. In the rush, it’s a common mistake to forget to sign the returns.
How to solve the problem: Ensure the signature is correct in all places on the forms and ensure both partners sign if filing jointly as a couple.
Hire a Professional to Do Your Taxes
Hiring a professional financial advisor to help can provide peace of mind that you include all the necessary elements of your tax returns. Arizona-based Prime Wealth Advisors is a full-service tax, retirement planning, estate, and wealth management firm that can take the guesswork out of filing your taxes. Call 623.77.PRIME or visit our website for more information.