According to a survey by the American Cleaning Institute, 80% of Americans plan to spring clean this year.
What’s funny is that same percentage of people would rather spring clean than take care of their taxes.
I get it.
While I understand that sentiment (taxes take some very focused attention to get them done right), I also know hurrying to get things done at the last minute won’t benefit you.
If you want to carve out more time for wiping your baseboards and cleaning behind the couch (and apparently you do), I’m here to take your tax filing off your plate. But we’re under a month until the deadline, so get on my calendar ASAP:
Whether or not you decide to put your taxes in the capable hands of my Dennis Fritz CPA team, I will say, it’s easy to make mistakes when you wait until the last minute and end up in a rush. And that can cause delays in receiving a refund if you’re getting one… or worse, penalties and fees.
I certainly don’t want to see you paying more than you should. The IRS already carves out enough of your income. So, let’s zero in on the most common tax return mistakes most Redding people make so that YOU don’t fall into that trap…
3 Common Tax Return Mistakes Redding People Can Easily Avoid
“If you make a mistake and do not correct it, this is called a mistake.” – Confucius
Tax return mistakes happen all the time. Some mistakes just mean filing a simple amendment. Others can be costly — you end up with a smaller refund or you end up paying more than you should.
For example, consider Sarah, a hard-working single mom. She finally sits down to file her taxes. She’s heard about potential tax breaks for parents and is eager to see a decent refund after a challenging year. A few hours and a headache later, she hits “submit”… but worry begins to tug at her mind. Did she make a mistake?
Suddenly, Sarah realizes she forgot to add some income from a few dog grooming side jobs in early 2023. Could that small mistake cost her?
Many people I serve have been in Sarah’s shoes — taxes are stressful, the tax code is complicated, and it’s easy for tax return mistakes to occur.
So, for your peace of mind in knowing what to be extra careful with, let’s look at the most common mistakes and how you can avoid them:
Tax Return Mistake #1: Bad math
Lest you think that DIY tax software will catch your math errors, just look at the statistics:
– In fiscal year 2022, the IRS sent close to 16 million math error notices. The top math errors involved the recovery rebate credit and the child tax credit.
– According to a 2021 study by the Government Accountability Office (GAO), about 21 percent of earned income tax credit (EITC) claims had errors resulting in billions of dollars in overpayments.
So, paying close attention to your numbers is going to matter… both for your wallet and for avoiding the IRS’s attention.
Tax Return Mistake #2: Forgetting key information
Missing or incorrect Social Security numbers, misspellings, and inaccurate reporting of income remain persistent problems even as more people use tax software.
Ever type your social security number and it just feels … wrong? Tiny errors in personal information can pose more problems with delayed refunds and increase the likelihood of being audited. Yikes.
Tax Return Mistake #3: Problems with Deductions & Credits
There are tons of tax breaks out there, but if you don’t understand them or don’t claim them properly, you’re essentially leaving money on the table. And while tax softwares ask helpful questions, you might still miss out on some that apply to your specific situation.
Why do these mistakes matter? When something’s wrong on your return, it can mean delayed refunds, increased likelihood of audit, and potentially missed money-saving opportunities you might be qualified to receive. None of these are ideal.
So, what do you do to circumvent those?
Well, two things:
1. Like your math teacher always told you, double … no, triple-check your returns. Reviewing your return before hitting that submit button helps ensure accuracy. Run the math through your calculator again and look carefully at all personal details.
2. Ask a pro for help. Tax professionals like myself eat, sleep, and breathe the tax code. (Okay, maybe not that much.) We have processes in place to make sure your return is accurate and leverage all of those money-saving tax deductions and credits correctly (with the needed details to back them up).
Tax season doesn’t have to be a nightmare. By knowing the pitfalls, taking your time, and enlisting a little Shasta County professional help, you can file with confidence.
After all, wouldn’t you rather spend any refund on something way more fun than fixing a tax filing mistake?
Helping you file error-free,
Dennis Fritz
