Waiting until the last minute to work on your tax return increases the likelihood of calculation errors. Being rushed will lead you to misread questions, provide incorrect answers and may ultimately contribute to smaller refunds and even an audit. Let’s go over some practical tips which can help you avoid tax errors.
Start Well in Advance
Rather than waiting until a few days before tax returns are due, start a few months before. Starting your return in January is beneficial because you have an ample amount of time to review every section of your return to ensure that you have not missed anything.
Triple Check the Return
Take your time when running checks on your return before filing. When running checks, act like it is the first time you have looked at your own numbers. Scrutinize everything on the return and have absolute confidence that every figure and deduction is correct. Triple-checking helps find errors.
File an Amended Return
Instances do occur where documents arrive that are unexpected. You are permitted to file amendments to your tax returns. These amendments may result in a payment to the IRS being required or a reduction to your refund. Regardless, filing them the following year is not generally advisable as this can result in a penalty.
Closing Thoughts
The closer it gets to the April 15th deadline, the more likely you are to make mistakes. Organize yourself and take each step of completing the return slowly. Tax returns in which itemization is required do take a longer amount of time and allowing a few extra hours of preparation helps so that expense reports, medical deductions and other deductions are not missed.
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