How To Avoid Costly Mistakes When Filing Tax Returns
PHILADELPHIA (CBS) -- With two weeks to go before the filing deadline, it's crunch time for taxpayers who haven't yet completed -- or started -- a tax return. That last-minute sprint to the finish can sometimes lead to costly mistakes.
In the final days before the Federal Income Tax Filing deadline, things can get stressful.
"There are so many rules, regulations, age limits, income limits. I mean, it is really complicated," says Jacqui Basso, President of the Greater Philadelphia Chapter of the Pennsylvania Institute of Certified Public Accountants.
She says first watch out for basic errors.
"People have to remember to put the correct address on their return, sometimes they forget to include their payment for their taxes due," sais Basso.
And double-check your social security number.
"They could flip the numbers, they could just be off by one digit," said Basso. "It is really important for you to sign and date the tax return."
Another simple mistake: choosing the wrong filing status.
"I think a lot of people confuse 'head of household' if they're single and they have children. Sometimes people use 'single' versus 'head of household.'"
Keep in mind, if you don't file the correct status your return could be rejected or your refund delayed.
Math errors are less common these days with so many people using tax preparation software.
Even so...
"People forget to maybe report income. Like they might have had a 1099 in the prior year and they forget to wait for that tax document in the mail and they file ahead of time," said Bassos. "Sometimes people get multiple pension checks, so they would get multiple 1099 Rs and it's easy to forget one."
Finally, while it's great to get a big refund in the spring, that's not smartest thing to do. You'd be better off adjusting your tax withholdings from your paycheck and getting a little extra money in your paycheck throughout the year. You can adjust withholding going forward, just fill out a new W-4 form and submit it to your employer.
