Whether you’ve already filed your taxes or you’re procrastinating until April 18, keeping these common tax-filing mistakes in mind can prepare you for the future.
Using software can help you avoid errors, but it won’t ensure you’re transposing correctly. Refer to these tips as you file to avoid sending through a mistake that delays your return:
1. Inaccurate Social Security number
This may seem like an obvious tip, but it’s worth the mention – the Internal Revenue Service advises you make certain that all Social Security numbers you input while filing match the exact number found on your Social Security card. If you make this mistake, it will take longer for the IRS to process and deliver your return.
2. Incorrect filing status
Have you been married or divorced in the last year? These questions will come up while you’re filing your taxes, so be sure to fill out your status correctly.
“The filing status is determined by the current status on Dec. 31, author Abby Eisenkraft told AARP. “So if you got married on New Year’s Eve, you’re married all year. If you got divorced on New Year’s Eve, you’re single all year.”
Filing incorrectly can affect your tax bill and can result in a rejected return. If you’re unsure about your current status and you’re filling out a paper return, use the Interactive Tax Assistant tool. If you’re using tax software, follow the software prompts to determine your correct filing status.
3. Wrong routing or account number
If you fail to fill out your routing or account number for direct deposit correctly, you won’t receive your funds – and worse, they might deposit into someone else’s bank account.
“I’ve heard plenty of horror stories about the government depositing refunds into the wrong account,” he told AARP.
If the IRS notices the mistake, however, they may pull it back and send you a check instead, but this will delay your refund. If you notice a mistake, contact the IRS and your bank immediately.
4. Incorrect health care reporting
According to the IRS, health care reporting errors happen all of the time – one of the most common errors is failing to claim a coverage exemption. The site states that “If you don’t have qualifying health care coverage but meet certain criteria, you might be eligible to claim an exemption from coverage and avoid an unnecessary payment when you file your tax return.”
If you did not have coverage all year, review the exemptions carefully. There are exemptions for a surprising number of situations, and claiming one would reduce or eliminate your penalty.
5. Missing signatures
You might be so overwhelmed about filing that you forget to enter one of the most vital pieces of information – your signature. According to Bankrate, if your taxes are not signed and dated correctly – whether they’re written or e-filed – the IRS won’t process your return. If you’re using tax filing software and will be e-filing, you’ll be signing your document with a PIN (personal identification number). To confirm your identity from your PIN, you will be required to provide the previous years’ PIN and adjusted gross income. If you’re mailing a paper return, regardless of whether it was prepared by hand or using tax software, give the document a quick scan to ensure you’ve filled it out in its entirety and be sure you and your spouse, if this is a joint return, sign where indicated.
Do you have any questions regarding these tax-filing mistakes? Would you like to discuss the matter further? If so, please contact me, Amy Van Fossen, at 201-806-3364.
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
