Tax Day is quickly approaching, and with just one week left to file, it’s important to keep a close eye on common mistakes that taxpayers make.
Filling out tax returns can be confusing, and there are some easy ways that people can slip up when filing themselves, according to Lisa Greene-Lewis, TurboTax expert and CPA, who shared five common mistakes with The Post that people tend to make.
The most common, she said, is procrastination. Taxpayers will sometimes wait until the last minute — or not even file at all — which can be detrimental to their refund.
“Those who wait and procrastinate also increase chances of leaving things out, like important receipts for expenses. These can all be valuable deductions that could increase your refund, so start early,” Greene-Lewis told The Post.
Another mistake taxpayers make is entering information that contains errors or leaving out key information entirely.
Greene-Lewis noted that she has seen taxpayers input incorrect Social Security numbers for dependents, “which is important, as you cannot claim valuable deductions and credits unless you have the right Social Security.”
That is particularly crucial for the Earned Income Tax Credit, which is up to $8,046 for a family with three kids, or the Child Tax Credit, which is $2,200 for dependents under 17 — an increase from $2,000 last tax season.
Errors in calculations can also negatively impact your refund, so it’s important to make sure you’re handling numbers correctly.
“Doing the wrong math and calculations can hold up your refund. Should this be the case, you will receive an adjustment letter from the IRS,” Greene-Lewis said.
One common mistake applies mostly to divorced and separated parents since two people cannot claim the same dependent.
“Only one person can claim the deductions and credits and receive the tax benefits, so parents who are no longer together should have a clear line of communication,” she explained. “Otherwise, one of the returns will be rejected.”
The final mistake Greene-Lewis warned about was not e-filing with direct deposit, which is the fastest way to get your refund.
When using it, taxpayers will get their refunds within 21 days or less after acceptance from the IRS. Otherwise, filing by mail will take six to eight weeks to receive a refund.
Beyond common filing mistakes, Greene-Lewis also noted some changes that have taken place since last tax season, including the Child Tax Credit increase.
Additionally, homeowners should be aware that the deduction for state and local property taxes increased to $40,000.
There are also new tax laws that impact those who earn overtime and tips as part of their income.
There’s a new deduction for tips up to $25,000. Service workers who earn overtime can deduct up to $12,500 in overtime pay — and up to $25,000 if they are married and filing jointly.
“Keep in mind that claiming a credit or deduction that you may not be eligible for or one that requires more information from the IRS will likely delay your refund,” Greene-Lewis said.
“Having a tax expert is particularly helpful in these scenarios to understand what you are — and aren’t — eligible for.”
The Internal Revenue Service has also warned taxpayers about scammers out to rip you off.
Scams tend to spike during tax filing season because people are already expecting communication regarding refunds, payments or account updates from the IRS, Eric Bronnenkant, head of tax at Edelman Financial Engines, previously told The Post.
Fraudsters take advantage of heightened fear and awareness of looming tax cutoffs, “hoping to catch people off guard and stressed,” he explained.
Back in March, a simple typo in a tax document threatened the refunds of more than 50,000 taxpayers in New York, leading to some receiving smaller payouts than anticipated, while others were sent notices asking for additional payments.
The error has since been corrected, officials said, but not everyone has collected their full refund yet.
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