LIHU‘E — The deadline to file tax returns is looming. Only five days remain before an individual’s income must be in the hand’s of the Internal Revenue Service and the state, or least well on its way. Here are some
LIHU‘E — The deadline to file tax returns is looming. Only five days remain before an individual’s income must be in the hand’s of the Internal Revenue Service and the state, or least well on its way.
Here are some common mistakes to avoid while preparing one’s taxes which, if not accurate, could delay refunds, according to a Friday press release from the IRS.
— If filing electronically with “e-file or Free File, tax software will do the calculations, flag common errors and prompt” an individual for missing information.
— Remember the “Making Work Pay tax credit (available in 2009 and 2010) is worth up to $400 for individuals and $800 for married couples. Most people got it as a reduction to their paycheck withholding. Form 1040 filers must complete Schedule M, attach it to their returns, and claim the credit to benefit from it. (Tax software handles these calculations automatically for e-filers.)”
— If an individual has received the “one-time Economic Recovery Payment,” they need to reduce the “Making Work Pay credit by that amount and taxpayers who are not certain whether they received the economic recovery payment can find out with the help of an online tool, Did I Receive a 2009 Economic Recovery Payment?” If a person does not have access to the IRS Web site, they can call 866-234-2942.
— For those claiming the Homebuyer Credit, “complete Form 5405, and include it along with the settlement document, such as a HUD-1.”
— Be sure to “use the peel-off label if you mail a paper return.” Any corrections can be made directly on the label.
— Remember to include social security numbers “in the box provided on the return.” If there is no peel-off label to use, be sure to “fill in all requested information clearly, including accurate social security numbers.”
— “Check only one filing status. Also, check the appropriate exemption boxes.
— “Double check all figures. While software catches and prevents many errors on e-file returns, math errors remain common on paper returns.”
— Make sure the bank routing and account numbers are accurate. “Incorrect numbers can cause a refund to be delayed or deposited into the wrong account.”
— “Sign and date the return. If filing a joint return, both people “must sign and date the return. E-filers can sign using a self-selected personal identification number (PIN).”
— “Attach forms to the front of the return. Paper filers need to attach W-2s and other forms that reflect tax withholding, as well as other necessary forms and schedules, to the front of their returns.”
— If a person owes any taxes, “a number of e-payment options are available.” One can also “send a check or money order payable to the United States Treasury.”
Visit irs.gov for more information.
