Online Tax Services Avoid 7 Common Errors
Online Tax Services Help to Avoid Tax Return Blunders
If there’s one thing that we can count on, it’s that tax laws are constantly changing. To help us to cope, the better online tax services, such as 1040.com, offer assistance to avoid the seven most common tax blunders.
These mistakes are not only attributable to those with simple returns, but also to those who file more complex tax returns. It is our hope that listing these seven types of errors will help you to avoid them.
Failure to report all taxable income-
- This is probably the area that so many taxpayers fail to avoid. Those who receive a W-2 from an employer generally report that income. But suppose you are working as a consultant or perhaps some other sideline business? For whatever reason, you might not receive a Form 1099-MISC for those earnings. However, that income is taxable and must be reported on your tax return. Generally, it must be reported on a Schedule C as self-employment income. Our DIY online tax services program will ask you the right questions so the income is reported. It will also make sure that you report any expenses that you paid for the sideline work, thereby reducing the taxable portion. All calculations are automatic.
Missing out on IRA contribution limits-
- This is the one area where you can pay yourself and also deduct it on your tax return. Making contributions’ to a traditional IRA can be deductible, providing your gross income doesn’t hit the top limits. In addition, those who are age 50 or older are able to contribute $1,000.00 more.
Entering incorrect routing & bank account numbers-
- These numbers need to be reviewed and reviewed again to be sure they’re correct. If you have a refund due and one of the numbers is wrong, or even transposed, your refund is returned by your bank & then the hassle begins when you try to track it down. If you have a balance due and setup a direct debit, the same thing happens. The IRS doesn’t get paid and by the time you are notified, interest and penalties may apply.
Using an incorrect SSN or a name change-
- As soon as your tax return is transmitted, the very first area that is verified are the social security numbers and names. If any of the SSN’s or names differ from what the Social Security Administration has, the return is rejected. Frequently, a newly married couple may not have reported a name change for the spouse and used it on the tax return. Always verify the SSN’s and names every year to be sure no errors have popped up.
Paying high tax preparation fees-
- Many taxpayers qualify for a free federal return if their income is within the IRS guidelines. Online tax services such as 1040.com, provide this service and charge a small fee for filing a state return. Don't pay a CPA to file a simple return that you can file online by yourself. Click To Tweet
- Without a doubt, electronic tax filing is the safest and most accurate way to file your taxes. In addition to the speed, you have a receipt when the IRS and your state accepts the tax return for processing, This past tax season, the IRS was accepting and processing tax returns in under 24 hours. That means faster refunds.
- Does this sound familiar? Any time that we wait and then have to rush, the chance of errors rises. Filing income taxes is one of the more important items that we have to do each year. Not having to rush and taking a little extra time to make sure we didn’t omit something is crucial. Start getting organized early to be sure that you have all of the forms and information you need to file your taxes. If you have had any type of life changes, it may take more time to get everything ready to file.
We urge you to take the extra time to review your tax return before filing. Visit one of the best online tax services, 1040.com, and see just how fast and easy online tax filing really is.