As careful as you are with your tax preparation, mistakes sometimes happen. In many cases, an error will require you to provide more information—which can hold up your tax return—but they might also incur hefty penalties. While you can’t always avoid them, knowing what to look out for will give you the best chance at minimizing that risk.

Avoid These Tax Preparation Pitfalls

1. Credit & Deduction Errors

Figuring out credits and deductions is confusing for most taxpayers. As a result, this is a common area where people can make mistakes, as there are many factors involved in determining when you’re eligible for either. For instance, you may seem to qualify for a certain credit, but are ineligible due to your filing status—which can occur when married people do their tax returns separately.

2. Incorrect Math Calculations

There’s a lot of math that goes into tax preparation, which means there is a lot of room for error. If you use software, the chance of errors is decreased since you’ll be alerted when the numbers don’t add up. However, if you choose to file a paper return, it will be your responsibility to meticulously check your math to ensure all entries are accurate. As an alternative, many turn to an accountant to provide peace of mind with their return.

3. Problems With PINs

Filing online is convenient, but it also requires a Personal Identification Number (PIN). If you input the incorrect PIN—which can be carried over from last year’s paperwork—your tax return will be rejected. To prevent this from happening, it’s important to keep good records for accurate and timely tax preparation.

Whether you’re an individual taxpayer or small business owner, Selph and Friday, CPA, provides indispensable guidance to Texarkana, TX, clients. Schedule an appointment today by calling (903) 792-0281 and take advantage of more than three decades of experience. You can also visit them online for a complete listing of services, including tax preparation, assistance with IRS issues, and instruction on how to use the related software.