However, simple tax mistakes that are commonly made should be avoided at all cost to prevent your forms from getting rejected. Be prepared for the 2017 tax season by know how to avoid common errors.
Common Tax Mistakes
1. The number one mistake you can make is letting deadlines sneak up on you. Nothing makes a person roll their eyes like taxes, so they wait and put it off til the last minute. Then when they go to file a few days before or even the day of they run into a mistake that they can’t fix in time.
Generally, it’s too late to find a CPA or tax professional to help them out in time. To avoid late filing penalties plan ahead and file or taxes in time or spend a few minutes with ExpressExtension to e-file an extension that automatically grants you an extension of up to 7 months to file.
Note: Extensions do not extend your time to pay your taxes. Any amount owed to the IRS must be paid by the deadline.
2. Another mistake is not following up on tax laws. Congress can change the tax laws on an annual basis that do things like move a deadline up, update failure to file penalties, or change the requirements of certain forms. For example, the April 15th deadline for Form 7004 was moved up to March 15th! If you weren’t aware of that change then you would be in for a shock in April.
3. People try to speed through the process to get it over with and often end up making mistakes. They miss a box that’s supposed to be checked, list the wrong date, or even miss a signature. Slow down and proofread your form before you submit it. There is no need to get rejected over a silly typo.
When e-filing with ExpressExtension all of your information will be clearly listed for you to proofread before submitting your form to the IRS. ExpressExtension also performs an audit check to catch anything that the IRS might flag, so you can make any corrections before transmitting your form. As a result, your extension will be approved in a matter of minutes.
4. It’s fine, math isn’t for everyone. However, you do need it to calculate a few things on your tax forms. By doing the math wrong you could end up in a world of hurt by making mistakes such as over calculating how much you owe to the IRS or underestimating your return. Take your time and double check your math. You could also find someone around you to double check your math for you, or get with a CPA or tax professional.
5. People miss out on major savings by not taking advantage of tax credits and deductions! You can save a lot of money by taking advantage of your home office deduction, student loan interest deduction, child tax credit, and more, you could save upwards of $1,000 on your tax bill! Study your form a little, and read up on the deductions you can lawfully take advantage of prior to filing.
6. People don’t file if they can’t pay. Failure to file comes with penalties and fees. You’ll wind up with a whole lot more on your plate if you simply choose not to file by your tax deadline. If you can’t pay your taxes the IRS will help you set up an installment plan, or an agreed upon payment plan, or you can pay your bill with credit cards for a cheaper interest rate. Paying up front will help you avoid interest and fees later.
In the event that your form is rejected, you’ll be notified via email with instructions on how to correct your form. You can then make your correction and resubmit your form to the IRS as many times as you need to, for free.
Best of all, the dedicated support team at ExpressExtension is always standing by to help. Please don’t hesitate to contact us with any questions that you may have via live chat, phone, or email.