Top 10 Common Tax Filing Mistakes
Some mistakes, such as numbers 1, 2 and 4 can be avoided simply by e-filing your tax return.
- Mistake #1.
- Return not signed.
- Mistake #2.
- Social Security numbers are incorrect.
- Mistake #3.
- Standard deduction used when itemizing would have saved the taxpayer more money. It is estimated that over a half-million taxpayers could save by itemizing.
- Mistake #4.
- Making Math miscalculations. Review your return to make sure that your math is correct. If you find a mistake, remember to recalculate other figures that are affected by the error.
- Mistake #5.
- Income items omitted. W-2s and 1099 interest and dividends are often overlooked.
- Mistake #6.
- Forgetting About Carry-Forwards from Prior Years. Make sure to check prior year returns to see if there are any items to be carried forward to this year, such as capital losses or charitable deductions that exceeded the amount you were able to deduct in previous years.
- Mistake #7.
- Forgetting to Attach Required Documentation. Make sure you’ve attached W-2s, 1099s and all required schedules and forms. You should attach them using the “Attachment Sequence Number” shown in the upper right corner of each schedule or form. Attach other statements and schedules at the end of your return, even if they relate to another form or schedule. Also, it’s a good idea to include your name and Social Security number on every page of each form you submit.
- Mistake #8.
- Failing to Calculate the Alternative Minimum Tax (ATM). With every passing year more and more taxpayers discover, often to their great surprise, that they are subject to the alternative minimum tax (AMT). But many of the 16 million taxpayers who are predicted to become subject to the AMT for the first time over look filling out form 6251 and receive a nasty note from the IRS informing them they owe more money and, of course, interest on the underpayment. (Check out Alternative Minimum Tax Assistant to avoid surprises).
- Mistake #9.
- Incorrect filing status recorded.
- Mistake #10.
- Failing to Document Charitable Donations. For charitable donations of $250 or more, written acknowledgment from the charity is required. A canceled check is not sufficient. If your gift was one of property rather than cash, the acknowledgment must describe the property. When your noncash contribution exceeds $500, you also are required to file IRS Form 8283, Noncash Charitable Contributions, giving details of the donation.
