These are the common mistakes people make when filing their returns. These mistakes cause you a few headaches like delays in your refund or pay penalties and interest. So without further ado, let’s get on to some tax mistakes that you won’t commit after reading our list:
9. Not Filing on Time
Most people wait until the last week to file their taxes. This adds to their stress as the tax deadline comes near. So file before that. Interest and penalties increases fast for later filers.
8. Missing or Incorrect Information
Perhaps incorrectly filled information may hold up your refund check. One of the main errors that we notice, and this is generally with people that wait toward the end to file, is that they forget to sign their returns.
7. Math Errors
Careless mistakes. For some of us, math class might have been the last time we used calculator and some numbers. Math errors are common on tax returns. Filing electronically can help, since your tax software will do most of the math for you.
6. Not Aware of the Latest Tax News
Keeping up with the latest changes to the tax code can be quite a challenge, but you can miss out on some major opportunities if you fail to do so.
5. Not Keeping a Copy of Your Return
Storing a Copy of return ensures rectification of mistakes made and will be helpful during filing return in the immediate next year.
4. Missing a Tax Break
Missing tax credits and deductions can end up paying way too much tax when you file. Deductions work by reducing the amount of taxable income.
3. Filing the Wrong Tax Forms
There are different forms people can use when filing an individual tax return. So there must be correct selection of forms as applicable.
2. Filing under the Wrong Status
Choosing your status has a big impact on the types of standard deductions you’ll receive on your tax return. Selecting the right status on your returns is important.
1. Not Filing at All
Even if you donâ€™t have tax liability, filing of returns is encouraged. If you’re owed a refund, you’ll cause yourself problems in the future by not filing (and you can lose your refund in the process).
So the countdown begins for financial year 2010-11.
Tax Returns for Financial Year 2010 -11 (March 2011) has started. Request you to please visit Taxmantra.com or mail us Form16/ Salary Certificate and details of other income, at email@example.com . We would take it from there to file your return of income.
Taxmantra.com provides complete online taxation solutions for individuals ( Tax Returns + Tax Support + Tax Planning ) â€“ please see this â€“ Services Offered.
Taxmantra.com- Providing Complete Online Tax Solutions for Individuals, Not Just Returns.