At David C. Ellwanger, CPA, P.C., we offer a number of different tax related services for our customers. One of them is of tax preparation. But the reason why people spend most of their time to find a tax preparer is because this is one of the hardest tasks to accomplish in relation to taxes. There are so many mistakes that people can make in terms of preparation and filing which can ultimately hurt their prospects of getting a tax refund.
As tax accountants, we help our clients every step of the way to ensure that their tax filing goes smoothly. Keeping in line with that, this article highlights the common mistakes that people commit when filing their taxes and each of these can be corrected with relative ease as stated below.
When we talk about taxes, the first thing that comes to our mind is numbers. However, words are important too, for example, the name on your IRS form. Some of the important names on the IRS form that you need to enter correctly include your name, the name of your spouse and the name of your children. The names that you enter on the IRS form are cross checked against your social security number which has all your data stored in one place.
The problem here is often faced by new wives who have recently changed their surnames. In such a scenario, you need to notify the Social Security Administration about it, before you set about filing your tax return.
Getting the refund directly deposited into your account is actually an easy way to handle money. In this way, you will not have to worry about the cash being lost in the mail. All you will need to do is get that amount transferred into your bank account. Yet, this is where people who find a tax preparer are better off than people who attempt the process alone. Tax filing and preparation is usually done in a rush. Sometimes, you may enter the wrong account details, which could result in the funds being transferred to an account that isn’t yours.
The easiest way to avoid this issue is by dividing the refund into multiple accounts. Get each part of the refund transferred to a different bank account so that even if you make an error in entering the numbers, you don’t lose all of your cash.
Not all of us are equally adept at handling calculations and as time for tax filing comes near, this fact can come back to haunt you. The biggest reason why most people hire a tax accountant to do all their tax related calculations is to ensure that they don’t calculate the amount that they have to pay, incorrectly. Mistakes in calculating your taxes can result in transferring of these figures from one schedule to another and the reduction of your tax refund amount.
There are a number of ways that you can avoid this issue. One of which is the use of tax software to help you calculate your taxes properly. The other and more feasible option is making use of specially hired tax accountants such as the ones we employ, to help you with proper filing.
There is a common misconception that you should make sure that you file your taxes at or before the deadline. But it is because of this rush to file the taxes on the set deadline that a number of people end up making silly mistakes in filing their taxes without the documents required.
However, this can be avoided because millions of people make use of tax filing extensions each year. This extension gives the tax filer time until October to file their taxes which were due in April. It’s best that you hire a tax accountant to handle these issues though, since they know what tax relief you are eligible for by law.
Ever since concerns for the safety and privacy of the taxpayer have escalated, the IRS has stopped printing social security numbers on the top of the tax package that you receive. This however, has backfired and has resulted in taxpayers making a very common yet fatal error in their tax filing, i.e. forgetting to fill in their social security numbers on the IRS tax form.
If you don’t put your proper identification number in the form, the validity of the IRS form can be challenged. In tax filing, a number of transactions such as the savings account, retirement plan, income statements etc. are linked to your social security number. Without it, it is hard for your tax return to be entertained and processed.
One of the reasons people want to find a tax preparer is because they are experts in knowing which option in your IRS form gives you the kind of benefits you need. An important option in this regard is your tax filing status. There are typically 5 options available to you to choose from. Whatever one you choose will have an impact on your overall tax bill. Typically, the most beneficial status is head of the household, since you get to claim tax credits for your dependent children, etc.
Are you an avid supporter of charities and the work that they do? Have you ever made contributions to a registered charity? Most people don’t think that keeping track of the charity work that they have done will help them. Yet, in reality, it does. This is a common filing mistake that people end up making. Keeping track of all your charity contributions helps you claim tax deductions.
The government encourages people to donate to charities. The important thing is that it is not only restricted to monetary donations. If you are donating stuff, make sure you get a receipt from the organization that mentions the valuation of the stuff that you have given away.
Hiring a tax professional, a tax preparer or a tax accountant is not the easiest of tasks. But we, at David C. Ellwanger, CPA, P.C., pride ourselves in our services and help our clients deal with all kinds of tax issues. If you want to get your tax issues resolved, click the link below to get in touch with us right away!
