5 Typical Tax Filing Mistakes Small Businesses Always Make - The Smiling Heart

5 Typical Tax Filing Mistakes Small Businesses Always Make

Filing your tax return is a bit of a pain, unfortunately, as the old saying goes ‘the only things certain in this life is death and taxes,’ and unfortunately the return is mandatory. The best thing you can do for an easy life is to keep your bookkeeping in order and avoid making any mistakes on your tax return, making mistakes will mean that you have to either do it again, pay fines or even need to pay more tax than you are suppose to. The IRS recently put together a list of the top mistakes made on tax returns and here are the top 5 that you need to avoid.

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Wrong Social Security Numbers

Getting simple details wrong on your tax return has the potential to cause you headaches and putting in incorrect social security numbers falls into that bracket. Many people simple try to rush through their return and making errors when typing in numbers, another danger is that you simply try to remember your social security number and do so incorrectly, don’t run the risk, make sure you revise this at the end to ensure accuracy.

Incorrect Names

Another ridiculously simple mistake that people make is putting in the wrong name when filing their return. Naturally the possibility of spelling your own name wrong is slim but when entering your partner or spouse’s or member of staff’s name this seems to be where some people trip up. Make sure that you enter the name exactly as it appears on the social security card to make sure that the names match perfectly with what is in the IRS’s system.

Filing Status

Remember that the information that the IRS has in their database should be matched perfectly by you, including your status. A simple mistake such as confusing Single, Married filing jointly, Head of Household etc. will mean that you will have to do your return all over again, let’s be honest it is fun to begin with and having to redo the whole thing for such a small mistake is something that you need to avoid.

Math Errors

Before checking on the your details, the first thing that the IRS will check is your math. If you are filing your return by paper then check and double check all of your workings out, missing a number or doing a sum incorrectly can be easily done and it is vital that you file an accurate return. Use a calculator or professional software to make sure that all of your math is perfect.

Forms Not Signed

Similar to the rest of this list, the most common mistakes are simple details that cause big problems, another such mistake is not signing the return. Without a signature the tax return can not be completed and very often if you are rushing to get the return sent off you can miss this important detail. To help avoid mistakes like this, make a list of the things that you must do before filing your tax return, then just before you send it off, go through your checklist and ensure that you have met all requirements.