Avoid These Common Mistakes When Filing at the Last Minute
It's common practice for people to wait until the last minute to file their taxes. But rushing through the process increases the risk of making errors that would delay your tax return, add interest to any unpaid taxes, or result in an audit. Here are some tips to help you get your tax return in on time and error-free.
Use tax preparation software. Tax preparation software is the easiest and fastest way to get your tax return completed and filed by the deadline. Software handles all the calculations and also helps identify deductions and credits that you may be eligible for. When preparing tax documents in a hurry, it's easy to make mistakes when entering information such as your mailing address, social security number, or prior year adjusted gross income, which can cause issues with your return.
Always sign your tax return. Tax returns are invalid without signatures. No matter if you're mailing a paper form or electronically filling it, don't forget to sign your tax return.
Double check your bank numbers. The IRS makes it easy for you to get your tax refund by sending the money to your bank by direct deposit. Take a moment to confirm that you've entered the correct bank account and routing number on your tax form. If you enter incorrect numbers, the IRS will mail your refund to your recorded address, which could take extra time. If the banking information you enter mistakenly turns out to be someone else's, that person could end up with your refund.
File for extension. Failing to file by the tax deadline can be a costly mistake, but it's easy enough to avoid. If you think you won't make the tax filing deadline, file an extension. This gives you six additional months to submit your return. Note that if you don't file and you owe, the IRS can start adding interest to the total, which can add up to a significant amount over time.
Ready to file your taxes? The whirlwind of last-minute tax filing can be stressful, especially if your bookkeeping is not up to date. If you need assistance getting your finances organized, let me help you. Schedule a call with me today!