Common Mistakes People Make on Their Taxes

As an individual, filing your own taxes can be cumbersome and confusing more than anything. With new laws being introduced, it can be difficult to keep up and do your taxes correctly. Sometimes the simplest mistakes can prove to be most deterring. For example, writing the wrong names, incorrect bank account numbers, errors in figuring tax credits or deductions or even forgetting to sign certain forms.

For these reasons and many more, it is always advisable to seek a professional tax accountant to help balance your books and keep your taxes in order. An accountant is well versed and up to date in tax laws and will make sure you file suitably according to your individual case – whether personally or in business.

To help you take advantage of our expertise and avoid some basic errors that could prove to be costly, DL Sorley Tax Service has put together a list of the most common mistakes people make on their taxes.

1. Not filing their taxes at all or filing late.

Sometimes people know they owe taxes and don’t file because they don’t have the money to pay. Not filing or filing late only causes more penalties that can be avoided just by filing by the due date. Installment payments can be made to the IRS, and most can be spread over seventy-two months. The interest rate with the IRS is far less than the penalty for not filing.

2. Missing out on crucial information.

Not claiming all your income can cost you. If someone works as a contractor and doesn’t claim all of their 1099 income, or if you have a saving account and didn’t claim the interest earned, you will be penalized for not including it on your original return. Ask yourself:

• Did I receive payment for work performed but not receive a 1099?
• Did I receive any interest on my savings account?
• Did I sell any stocks, bonds or business equipment?

When gathering all your information to prepare your taxes, make sure you think back and account for any income you may have received.

3. Making an error in your filing status.

There are five different filing statuses. Married filing joint and qualifying widow(er) receive the biggest deductions if you qualify. Can you be considered a Head of Household? Are you going through a divorce or are you separated from your spouse? Can you file as single? If you are unsure, it is best to speak to a tax professional to make sure you are using the filing status that is best for your situation.

4. Making typographical errors while keying information.

Transposing numbers will cause huge issues. From EIN numbers to social security numbers, to the amount of income or withholdings, any of these numbers transposed will cause headaches later. Always double check numbers keyed in. The extra time it takes to look over the entered information will save you time down the road.

To avoid these and other mistakes, reach out to the experts at DL Sorley Tax Service. As a family-owned business since 1967, we offer experienced bookkeeping, tax preparation, and tax consultation services in Plainfield, Indiana. Our skilled and experienced team members provide exceptional service to all our clients, and our fees across all our services are reasonable. We are competitive and guarantee our clients the appropriate service needed to resolve any tax issues that they might have.

For a complete list of our services, please click here. If you have any questions about tax and accountancy, we’d love to hear from you. Please contact us here.