Income Tax Return Checklist
- Double check your Social Security number.tax forms image by Chad McDermott from Fotolia.com
Using tax preparation software helps taxpayers automatically catch errors on their returns. Even with the potential extra set of virtual eyes, though, you should be well-prepared at all stages of the tax time process--preparation, filling out your forms and filing. An ounce of prevention is worth a pound of getting your refund on time or not paying a dime more than you need to in taxes. - Intuit, the maker of TurboTax preparation software, suggests having all necessary documents in hand as you sit down to fill out tax forms. These include income statements, such as W-2s and 1099 forms, business income and expenses, stock trade information, IRA and pension distributions, rental property income and unemployment and Social Security benefits. Compile information on credits you may qualify for, such as green energy credits, student loan interest, child care credits and the earned income tax credit. If you itemize, be certain to have information on medical expenses, mortgage interest and other deductible items at the ready. Intuit also suggests making sure you account for any estimated tax payments made over the course of the previous year.
- The last thing you want is a delay in processing your refund or penalties and interest added to your tax bill. A few simple checks prior to filing your taxes can save you the heartache. Bell advises using the peel-off address label the IRS should have sent you if you file a paper return. If any information on it is wrong, simply make corrections by striking through the bad info. Attach all necessary documents, particularly income statements (e.g., W2s), to your tax forms if filing a paper form. In all cases, Bell suggests double checking your filing status--make sure it is the most tax-advantageous choice. Be sure to sign your return and provide a daytime phone number in case the IRS has questions.
- As the Internal Revenue Service (IRS) points out, the most common mistake people make on their tax return is entering incorrect Social Security numbers (SSNs), or not entering them at all. Double-check SSNs not just for the primary filer, but for your spouse and dependents, if applicable. Bad or no SSNs are closely followed by math errors, involving addition and subtraction, according to the IRS. Kevin McCormally, Editorial Director for Kiplinger's Personal Finance Magazine website, points out that people often overlook several common tax deductions. He suggests checking to see if you qualify for the most often ignored deductions, including state sales taxes, out-of-pocket charitable contributions, moving expenses for your job, mortgage loan refinancing points and property tax deductions even if you do not itemize.
Tax Preparation
Before You File
Common Mistakes
Source...