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March 7, 2022

6 Mistakes to Avoid when Filing your Taxes

Avoid common mistakes on your taxes this year by being informed.

As tax season gets closer, streamline your plan to file taxes to avoid these common mistakes. By knowing what you should look out for, you can focus on submitting your return in record time.

Not paying required estimated taxes

Basic math errors are very widespread on tax returns, but thankfully you will not be penalized for these mistakes, and you will simply receive a notice and an adjusted refund amount from the IRS. However, for a speedier process, you can use software such as TurboTax, IRS Free File, or Credit Karma to calculate your data more efficiently.

Selecting the wrong filing status

When filing your tax return, choosing the correct status is very important since it will impact your tax credits and deductions, the tax bracket you qualify for, and—most importantly—the taxes you pay overall. The filing statuses include single, head of household, married filing jointly, married filing separately, and qualifying widower. Compare among these options to decide which status is most beneficial to you and remember that you may qualify for more than one status.

Being unaware of tax deductions

Don’t miss out on your eligibility for tax credits and deductions that will help increase the overall return if applied. This can lead you to miss out on credits for dependents or other big payments. To ensure the highest possible return, use an online service or tax professional to guide you through the process, you are not alone!

Rushing the process

The promise of filing early has the incentive of receiving an early refund but avoid doing this if it leads to mistakes from being unprepared. If you rush through the process without all the paperwork you need, you may have to fix your mistakes later on.

Submitting the wrong account information

Another common mistake to avoid is entering the wrong routing or account number from your bank. If you submit the wrong routing or account number, you may not receive a direct deposit or you may receive the refund of another person. For help confirming your bank information, contact Citizens First Bank for assistance.

Forgetful filing errors

The most widespread mistakes when it comes to filing are due to doing the process on paper. The disadvantages of paper filing include errors like forgetting to sign and date, improperly mailing forms, sending your return to the wrong address, forgetting to include forms, and more. Avoid these issues easily by filing through an online service.