When it comes to getting a tax refund, everyone wants it as quickly as possible. While filing taxes might be something that you dread, mistakes can slow down the entire process. Knowing what the biggest tax mistakes to avoid are is key to getting your tax refund quickly. This article will explore the biggest tax mistakes to avoid to make sure that you too can get your tax refund quickly.
The Basics
Many tax mistakes boil down to getting the basics wrong. Here are the most common basics that can lead to delays in getting a tax refund:
-
Not providing all necessary information – Leaving any required information off or failing to sign or date the forms can lead to delays in the processing of credits and deductions.
-
Not filing your taxes – You must file taxes in order to receive a refund.
-
Filing the wrong forms – Make sure to fill out the right tax forms for your situation.
-
Incorrect calculations – Check all figures for accuracy.
Common Tax Mistakes
Going beyond just the basics, there are several mistakes that are easy to make but can slow down the process of getting a tax refund. Here are the most common mistakes to look out for:
-
Claiming ineligible people as dependents – Avoid claiming your spouse as a dependent or any other people who don’t meet the criteria for being a dependent.
-
Not taking tax credits – There are several tax credits available which can reduce the amount of tax you owe and even increase your refund. Make sure to take advantage of those credits.
-
Missing out on deductions – Failing to take advantage of deductions can mean you are overpaying on your taxes.
-
Filing late – Filing your taxes late can lead to costly penalties and fees.
-
Not reporting all of your income – You are legally obligated to report all of your income. Not doing so is considered tax fraud and can lead to serious penalties.
-
Not claiming your dependents – Make sure to claim all dependents that you are eligible to claim. This can include your children, parents, or other people who are living with you. This can lead to an increased tax refund.
-
Not double-checking all information – Double-checking all information can help avoid any costly mistakes and will save you time in the long-run.
Advanced Tax Mistakes
Beyond the basics and the common mistakes, there are certain more advanced mistakes that can cost you time, money, and hassle when filing your taxes.
-
Claiming the wrong filing status – Make sure to choose the appropriate filing status. Depending on your situation, you may need to file as married, single, or head of household.
-
Not timing investments correctly – Timing investments and other transactions correctly can avoid unneeded taxes. Make sure to take into account capital gains as well as marginal tax brackets when timing transactions.
-
Not deducting your losses – Deducting your losses and being able to show proof can result in an increase in your tax refund.
-
Not filing for tax extensions – Filing for a tax extension can help avoid any costly penalties and fees, just make sure to complete it before the extension expires.
-
Not utilizing online filing software – Using online filing software such as TurboTax is one of the quickest ways to file taxes as it eliminates a lot of paperwork.
Overall, understanding the biggest tax mistakes to avoid is key to getting your tax refund quickly. The basics are easier to avoid, while the advanced mistakes require a bit more understanding. But, by being aware of all the mistakes, you can be sure to get your tax refund as soon as possible.