Avoid Common Tax Mistakes

March 30, 2016

Have you ever submitted your tax return only to discover an error? If so, you probably filed an amended tax return. Tax returns filed correctly the first time cost less to process and refunds are issued in less time.

Look out for these common errors to ensure your tax return is correct the first time around.

  1. Math errors. Even with a calculator, it’s easy to miss a step, to add where you should have subtracted, or to transpose some numbers when writing them down. Double check your work to be sure your math is correct.
  2. Claiming credits and deductions to which you are not entitled. It is important to only claim credits and deductions to which you are entitled. For example, $3,000 is the most you can claim as a renter’s deduction; anyone who claims more than that has made an error.
  3. Forgotten attachments. Forgetting to send a W-2 or a Schedule 1 to support a renter’s deduction or a homeowner’s property tax deduction can slow down the processing of your return. The Indiana Department of Revenue will send a letter requesting the additional documentation.

Electronically filing your tax return makes it easier to avoid mistakes. E-filed returns have only a two percent error rate, while paper-filed returns have a 20 percent error rate. See if you qualify to file your federal and state taxes for free at www.freefile.dor.in.gov.

Don’t worry! We know that mistakes happen. If you do need to file an amended return, download Form IT-40X here.

Need help? Give us a call at 317-232-2240. Phone lines are open Monday through Friday from 8:00 a.m. to 4:30 p.m.