"10 Common Tax Mistakes to Avoid This Year"
At JP Tax Service and Accounting, we know how overwhelming tax season can be, especially when trying to avoid common pitfalls that could delay your refund or result in penalties. To help you navigate this tax season like a pro, we’ve put together a list of the 10 most common tax mistakes and how to steer clear of them.
Selecting the incorrect filing status can lead to paying more taxes or missing out on credits. Your options include Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er). Unsure which one applies to you? Use the IRS Interactive Tax Assistant or reach out to us for guidance.
Simple math mistakes, like incorrect addition or subtraction, are one of the top reasons tax returns get delayed. If you’re filing manually, double-check your calculations. Better yet, use tax software or let a professional handle it—tools and expertise minimize errors.
One small typo in an SSN can cause your return to be rejected. Make sure all SSNs for you, your spouse, and dependents match what’s on your Social Security cards. This step is critical for claiming credits like the Child Tax Credit (IRC § 24).
Every source of income matters, whether it's from wages, self-employment, investments, or side gigs. Remember, the IRS receives copies of all your 1099s and W-2s. Failing to report income can lead to audits and penalties.
Tax credits like the Earned Income Tax Credit (EITC) or deductions like student loan interest can significantly lower your tax liability. Many filers miss these simply because they don’t know they qualify. At JP Tax Service, we make sure no eligible credit or deduction goes unclaimed.
Direct deposit is the fastest way to get your refund. However, providing incorrect bank account or routing numbers could result in delays or misdirected funds. Double-check your details before filing.
The IRS filing deadline is April 15, 2024, for this tax season. If you need more time, file Form 4868 to request an extension. Keep in mind, an extension gives you more time to file, not more time to pay taxes owed. Late payments may result in penalties and interest.
If you’re filing a paper return, an unsigned form is invalid and won’t be processed. For electronic filing, your self-selected PIN acts as your signature. If filing jointly, both spouses must sign.
If you’re e-filing, you’ll need your prior year’s Adjusted Gross Income (AGI) to verify your identity. Using an incorrect AGI can result in a rejected return. Locate your AGI on last year’s return or contact the IRS if needed.
Keep copies of your filed tax returns for at least three years in case of audits or for reference in preparing future returns. Organized records make your life easier and ensure you’re prepared for any inquiries from the IRS.
At JP Tax Service and Accounting, we specialize in simplifying the tax process for individuals and businesses. Our team works diligently to ensure that your return is accurate, compliant, and maximizes your tax savings.
Whether you’re unsure about your filing status, need help identifying deductions, or just want peace of mind during tax season, we’re here to help.
Let’s Make Tax Season Stress-Free
Avoiding these common mistakes can save you time, money, and headaches. Ready to file your taxes with confidence? Contact us at JP Tax Service and Accounting for expert assistance tailored to your needs.
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Let us help you make this your best tax season yet!