Top Income Tax Preparation Errors

During income tax season people all around are scurrying to their tax office to have their taxes prepared in hopes of receiving some money back as this time of year is so busy mistakes tend to happen frequently. Some mistakes go unnoticed and do not make a big difference in the outcome while other mistakes can cost you thousands of dollars. To prevent mistakes you need to find a New York Certified Public Accountant that can prepare taxes with a guarantee to have your tax papers rechecked for mistakes at no extra cost to you.

You also need to be sure of your tax information by going through your records and finding your information to verify everything. You can also log online to some sites and calculate your earnings so you will know how much you can expect. This amount is not always 100% accurate it can give you a close estimate. The most common errors made during tax preparation are:

Simply typo errors: This can be as simple as one number off on your social security number or birthday. But this typo is enough to stop the return. In some cases you can actually owe money or be in worse trouble if the social security number they entered actually belongs to someone who has been running from the IRS for years. To avoid this mistake you need to ask to see the NY income tax forms before they are submitted to the IRS. Once the preparation is complete you can look over the paperwork and check your social security number, birthday, and name for any errors.

Using Standard Deduction: using a standard deduction instead of itemizing is a safe deduction for a lot of people but it is not for everyone. You may be overpaying when you don't itemize. Do some research to find out what is better for your NYS tax preparation. If itemizing is better for you then you need to bring all the prepared paperwork with you to get your taxes prepared.

Math errors:Simple math errors can cause a lot of problems. In fact, according to the IRS, these simple math errors are the main reason for mistakes. When software is used by a NY tax preparer there are less chances of a mistake occurring. Math errors are usually caused by human error.

Attached documents are left out: When you have your taxes prepared it is mandatory that a W-2 is attached. All paperwork is needed in order to complete the New York tax preparation. If not the IRS may deem your paperwork ‘Incomplete' and not release your refund until the paperwork is completed.

Miss the deadline: It is easy to let time get away as you are busy, but you should always circle April on your calendar. When you don't pay your taxes, even if you just forget, the IRS considers it a non-payment and you will need to pay but with interest.

It is best to hire a experienced Certified Public Accountant New York and leave the hassles of tax preparation on them and avoid the common income tax filing mistakes.

Jonathan Medows, CPA, MBA is the Managing Member of MEDOWS CPA, PLLC, a boutique New York CPA firm serving the needs of individuals, freelancers, self employed individuals & small businesses. To see how he can help you reduce your tax liability and keep you in tax compliance please visit his website:
Medowscpa.com