8 mistakes to avoid when filing tax returns
Every year people tend to rush to file income tax returns as the financial year stats converge. The Internal Revenue Service (IRS) has a specific set of guidelines that ensures the filing process is easy for individuals to understand and file quickly. But many people tend to make mistakes on their forms which can lead to the income tax department rejecting the document. Therefore, here are eight mistakes to avoid when filing income tax returns. Premature filing Getting things done earlier than the deadline isn’t always simple while filing taxes. Institutions and organizations that issue the latest tax forms may send them later than usual. They may even send an updated version of the document a few weeks after the original is sent. If one files for taxes prematurely, they may risk missing out on any such changes in the documentation, which may lead to a rejection or delay in the returns process. Wrong tax filing status There are five tax filing status types: head of household, married filing jointly, qualified widow(er), married filing separately, and single. Unfortunately, several individuals pick the wrong one while filing the forms, which may affect their return. The tax filing process determines several factors, including the amount of standard deduction you are entitled to (if you are not itemizing) and the respective tax credits and deductions forms.
Read More