Common errors to avoid when filing your taxes
GREEN BAY (WLUK) – You now have more time to file your taxes.
The IRS extended the deadline to May 17th.
Even with the extra time, some people may still procrastinate and file at the last minute.
FOX 11’s Emily Deem spoke with Brad Roethlisberger, a financial advisor with Capital Credit Union, via Zoom about some common errors to avoid when filing your taxes.
- Click on the video to watch the segment
Wrong Social Security numbers:
Make sure the names and SSNs entered for everyone on your return match their Social Security cards. Don't forget to include SSNs for all your dependents; otherwise, the IRS may reduce or disallow any tax benefits (such as the child tax credit) for that dependent.
Bad account numbers:
If you arrange for direct deposit of your refund, triple-check account numbers. Otherwise, your refund could end up in someone else's account.
No signature:
Sign and date your return. If you're filing jointly, your spouse must sign, too.
E-filing PIN errors:
When you e-file your tax return, you're required to sign and validate the return electronically. To reduce tax-refund fraud, the IRS will no longer allow you to request an electronic personal identification number to confirm your identity. You'll need to provide your 2018 adjusted gross income or the PIN you selected last year, plus your date of birth. If you use the same tax software you used last year, this shouldn't be a problem. The program will automatically transfer information from last year's return. If you switch to a new program or use one for the first time, you'll need to check your 2018 tax return in order to e-file. It's always a good idea to have last year's tax return on hand when preparing your return, whether or not you e-file. If you misplaced your return, you can find last year's AGI using the IRS's Get Transcript tool.)
Try not to Panic:
The IRS is forgiving and will grant extensions of tax returns. Keep in mind however, that this does not mean an extension for having to pay if you have a tax liability. Since there is a penalty for a failure to file a return on time (if a taxpayer has money due), thinking I will just not file, is not a good idea as the penalties on this are typically higher than the interest due on making late tax payments
Take advantage of what you have coming:
As time gets tight, many taxpayers will forget about key deductions, or even better yet, tax credits that me may be entitled to.
Example: some taxpayers can still potentially contribute to a deductible IRA account even after Dec. 31 and write it off on their taxes for last year. If a person is eligible, this will help reduce your tax liability for last year
Congrats to you if 2020 saw your student loan debt finally getting paid off. Just remember that the amount of interest that you paid last year can still be used as potential deduction off your income
Did you pay for qualified childcare expenses, higher education expenses, have minor children in your home, put money into a company sponsored retirement account, or have a low to moderate income in 2020? These all may help you qualify for a tax credit (which is WAY better than a deduction) to reduce your overall tax liability.
