Unfortunately, tax return mistakes are easy to make and harder to avoid. Some mistakes are as simple as bad arithmetic, forgetting to sign your tax return, or incorrectly submitting your banking information for your direct deposit refund. And with each year comes new developments in your life that may affect how you complete your tax return. Through it all, there are professionals and other resources to get you through without any mistakes. Here are three tax return mistakes to avoid for your 2014 tax return.
Wrong Filing Status on Tax Return
Sometimes there are major life changes during a year, like getting married or divorced that will affect your taxes and filing status. Bankrate.com offers advice on how to correctly file. “You have five options, and each could make a difference in your ultimate tax bill. If this is the first tax-filing season since your divorce and you now are a single parent, writing “head of household” probably will be more beneficial. And what if you’re still married, but you and your spouse are thinking about filing separate tax returns? That works in some cases, but not all.”
Incorrectly Filing Health Insurance Information
According to CBS News, there are a few things you need to know about the impacts of health insurance on your 2014 tax return. If you purchased health insurance through the federal or through a state exchange program, there are two tax forms to complete: 1095-A and 8962 Premium Tax Credit. The 1095-A will help you complete the second form, so both are important to complete. Incorrectly filing this information could leave you high and dry, without a nice tax credit in your favor. If you already had coverage from a qualified source, make sure to complete line 61 on the 1040 or receive a fine of $95.
Going to the Post Office Late in Tax Season
Going to the Post Office in April is a mistake I made one year and vowed to never repeat it. I thought I had it all worked out: 10am on a Tuesday, perfect post office time to get in and out. I ended up in a huge line of tax filers. If you aren’t filing electronically from the comfort of your home, try and submit your taxes before April to avoid the masses. You will avoid stress and wasting time in lines.
Generally, if you collect all your required documents, follow the instructions on paper or the screen, and have a lifeline waiting to answer some questions, you will probably be alright. If you really aren’t confident and afraid to make major tax return mistakes, find a professional and have a care free experience! Check out this financial records worksheet from ACCC to help you stay organized along the way.
If you have other concerns about your financial health, ACCC is here to help. To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.