Wednesday, February 02, 2011

10 Tax Mistakes to Avoid

About.com put together a handy list of the 10 most common mistakes Americans make on their tax returns. These mistakes can delay processing and mailing of your refund, so make sure you avoid them!

    1. Failing to Sign and Date Return

    It sounds so simple, doesn't it? And yet, year after year, one of the most common tax mistakes is forgetting to sign your tax return. The IRS does not accept tax returns that are not signed. And remember: Both spouses must sign a joint return.

    2. Checking Wrong Filing Status

    Another common tax mistake is choosing the wrong filing status. You have five choices: single, married filing jointly, married filing separately, head of household and qualifying widower. Taxpayers often incorrectly claim head of household filing status without meeting the requirements.

    3. Messing up Social Security Numbers

    Here's another easily avoidable tax mistake: The names and Social Security numbers for the taxpayer, taxpayer’s spouse, dependents, and children who qualify for the Earned Income Credit or Child Tax Credit must be included on the return exactly as they appear on the Social Security Cards.

    4. Failing to Report Income

    According to the IRS, taxpayers often make the mistake of failing to report income that's not including on a W-2 or 1099 form such as rental income or self-employment income. If you forget to report that type of income, it may cost you in the long run. The IRS can assess interest and penalties.

Read more here