If you earn any kind of income, you’ll likely need to complete a tax return to ensure the federal and state governments are appropriately funded. While this is a responsibility that most working adults are familiar with, it’s still common for taxpayers to make mistakes—especially those that are new to the filing process. If you want to avoid complications with the IRS, as well as receive a fair refund, here are a few common tax return preparation mistakes you should be aware of.

5 Tax Return Preparation Mistakes

1. Bad Calculations

Misplaced numbers and addition mistakes are just a few of the common math errors that taxpayers make. These calculations could end up costing you more than you should pay—or leave you underpaying. To avoid math mistakes, always double-check your numbers or hire an accountant.  

2. Not Double-Checking Your Dependent Status

Not everyone can claim themselves as a dependent on their return. For example, many college students are already claimed by their parents and cannot also claim themselves. Getting claimed twice will prompt a response from the IRS, as well as require you to make adjustments. If there’s another party that might claim you, be sure to verify before preparing your own return.

3. Overlooking Tax Credits

There are numerous credits available that can lower the amount of money you owe to the IRS or increase the amount you receive back. College students, for example, might qualify for an American Opportunity Tax Credit that allows you to use educational costs—such as tuition—to reduce your tax burden. If you’re unsure of what you can qualify for, consult a trusted accountant.

4. Missing Income

Even if you earn the majority of your money from one job, you should always make sure to report any additional income you might have earned from a second job or freelance opportunity. Employers report these payments to the IRS, so if you fail to match up, you might be suspected of hiding funds.

5. Forgetting to File

If you do not file your tax return by the specified deadline, the IRS will notice and take action. Often, filing late will result in a penalty, as well as additional fines if you can’t pay the tax bill by the deadline. If you’re unable to complete your return on time, file for an extension with the IRS.

Whether you’re a first-time taxpayer or a seasoned veteran, Burch & Associates is here to help simplify the filing process. Based in Lincoln, NE, these enrolled agents can assist with all aspects of tax return preparation to ensure you report the information accurately. Well-versed in tax law, this firm will also help you navigate deductions, credits, and other factors that might influence the amount you owe or are refunded. Visit this accounting firm online to learn more about tax return preparation, or call (402) 483-4791 to schedule a meeting with a friendly professional.