Have you gotten your itin number online and started to think about your taxes or are you already deeply involved with them? Whatever be the case, make sure you are not making any tax mistake. According to the IRS, there were over 2.7 million errors on tax returns in the last year, which were filed by over 22 million Americans. In the year before, there were 6.6 million errors. As can be seen from the stats, errors are decreasing, but they still are not completely gone. The IRS also said that this is probably because more and more people are now using tax software.
Return errors are not the only mistakes which people make. Some of them forget to file and some of them forget to apply for an extension. Here are some of the most common errors which people make with taxes.
Some tax payers make the simplest of mistakes, which can easily be avoided. For instance, they enter the wrong social security number. Those who are not eligible for this enter the wrong ITIN Number online using tax software or even on their paper based returns. Not signing the form is another common mistake and entering wrong figures is another blunder which people love to make.
Please ensure you are entering all numbers correctly. You should also ascertain that your form is signed and dated. For people filing jointly, both your spouse and you must sign the form.
Mistakes Related to Dependants
Make sure that when you get an itin number online you know that a dependent is a person who depends on you for financial support like your spouse or child. If you have dependents, you are entitled to a number of deductions and tax credits. Apparently, this seems an easy rule but if your family is huge, problems can arise. Only one parent can claim the child as a dependant. Moreover, your dependant does not have to be a blood relative and can also be your girlfriend or boyfriend, but then no one must be claiming them as dependants on their returns.
People that have gotten an itin number online, with an income level below a certain range have a misconception that they are not supposed to file. As a rule of the thumb, everyone who is earning an income should file even if you are not supposed to pay any taxes. Should you not do this, you might not be able to get the earned income credit. This is actually a refundable credit, which implies that you can even get a refund amount. The maximum value of this credit can be as much as $6,000, but you will have to meet an eligibility criteria.
Filing until the eleventh hour
This is one of the worst things you can do with your taxes because there is a very high chance you are going to make a mistake. You will try to do everything in a hurry and might forget important things such as not itemizing your deductions or leaving out a tax credit.
File early; you will have more time to review your form.
If you need more information about our accounting and tax services, please contact us at 407-502-2400. 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.