We often tell people who want to apply for ITIN number that tax season is often hectic and time consuming because there is so much to deal with. As you gather your documents and fill up the return form, you are prone to making a number of mistakes. However, you should avoid them at all costs because they are going to put you in trouble with the IRS. We suggest that after you have filed up your return, you should thoroughly check it and make sure you are not making any of the following mistakes.
Not signing the return
Surprised to see this over here? Astonished as you may be, this is one of the most common mistakes which tax payers make every year when they apply for ITIN number. The IRS claims that is as one of the most see mistakes on the form, and by the way, if you are filing jointly with your spouse, both of you will have to sign the return.
Choosing an incorrect filing status
If you are about get into a marriage or getting out of one for that matter, choosing a filing status can be difficult. As a rule of the thumb, the status which you had on the 31st of December should you be your filing status. Whatever marital status you were in on this day should be used for deciding your filing status. Whatever happened on any other day does not matter. If you are not sure, ask your accountant about thus.
And one more thing when you apply for ITIN number; your filing status is really important because different deductions and tax rates apply to different statuses. Choosing a wrong one means paying more taxes than necessary.
Providing the wrong social security number or ITIN
There are so many people who enter an incorrect security number on their tax returns, double check and triple check that you are entering the right number. The same goes for your dependants as well. Their social security details must also be correct.
If you are not eligible for social security benefits, you will have to file with an Individual Tax Identification Number. You can apply for ITIN Number through the W7 form. As with your social security number, your ITIN number must also be correct. Not abiding by this can cause your return to bounce back or you may lose some of your deductions or credits.
Claiming several dependents
If you and your children live separately, it can be difficult to decide if they will be your dependant or not. The same is the case if you are divorced or your child is also filing a return. Discuss these things among yourselves beforehand and decide who will be claiming your kids as dependants. Please note that only one parent can do this and not both.
Not waiting for relevant forms
Your W-2 and 1099 forms are important when you apply for ITIN number, and until you receive them, you should not be filing taxes. Once you get these forms, enter every detail as it is so that the resulting tax amount is correct.
Not itemizing your deductions
Deductions do bring down the taxable amount but only when you itemize them on Schedule A, which many people forget.
If you need more information about our accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.