Thursday, January 30, 2014

It's Time For Love and Taxes...


Happy Valentine's Day! (Don't forget... it's coming soon.)

Of course the other thing coming soon is Tax Day on April 15, 2014.  

I thought I would give you some tax tips in case you are the kind of person who manages to get them done early (like me).

Here are seven of the most common errors on tax returns.  If you can avoid these errors, you'll greatly minimize the chance of an audit... and NOBODY wants to go through that!

  1. Mistakes on social security numbers (SSNs) top the list of tax return errors.  Make sure all the SSNs on the return are correct.  Its a good idea to put your SSN on each page of the return in the event you are mailing a paper copy , in case the pages get separated at the IRS.
  2. Math errors are another common mistake - especially when subtracting.  If you are not using a computer or tax preparer carefully check the math.
  3. Forgetting to sign and date the return.  Yeah, happens all the time.  Remember for a married couple filing jointly, both must sign.
  4. Failing to attach all the paperwork - like W-2's, 1099's etc.
  5. Putting income in the wrong place.  This is interesting.  If you record dividend income as interest income - like for mutual funds - the IRS computers will probably see that as under-reporting dividend income, because they get that information from the mutual fund companies. Then the hassles begin!
  6. Failing to file because you can't pay in full.  BIG MISTAKE!  File your return on time, even if you can't pay the tax due.  Willful failure to file is a federal crime.  You'll only pay interest on amounts past due.
  7. Failing to file when no tax is due.  I guess it happens.  You've got to file the return whether you owe any money or not.

There's lots of information on the internet to help you avoid problems. Just  do a search on "common tax errors".  In fact, as I was researching the information to write about in this blog I found there was a movie called Love & Taxes! You can view a funny clip from it here.

All of us hear at Tanner Insurance Agency, Inc. wish you a joyous tax season! OK....how about a reasonably fun tax season?  OK...good luck, we hope you get through it. How's that?

Seriously though, I hope this information was helpful to you.  

 

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