Making a mistake on your tax return can delay any refund that might be coming to you. For some people, this could mean the difference between making an on-time payment or being late, which can result in penalties.
Every year, however, countless people make errors on their tax returns. Before you hit submit, make sure you do a quick double-check of these common mistakes tax filers make on their returns.
Check Out: Tax Mistakes Everyone Makes — and How to Avoid Them
Double-checking for these before you file your return can save you time, money and headaches.
Misspelled Name
You might be thinking, who misspells their own name? But it happens.
The Social Security Administration (SSA) is what the IRS will verify any name against. In other words, the SSA is the point of record. Anytime your name changes, the SSA should be the first agency you contact to have your name updated. Otherwise, you’ll find that there is a cascading effect that can range from the DMV to new credit requests, applying for TSA PreCheck and updating your passport. In other words, it isn’t fun if you miss this step.
Often, misspelled names are more of a problem for women than men. This is due to changing their name after getting married or even after getting a divorce. If you have one of those major life events take place, be sure to update your information with the SSA.
It’s important to note that it can be the same for same-sex marriages where a name change takes place.
Wrong Filing Status
This is one error that can cost you money directly from your return. Choosing the wrong filing status will most likely change your return in some way.
It might simply be a mistake that the wrong filing status was chosen, but once again, life events can muddy the picture. If you were just divorced and your children are living with you, head of household will probably be more beneficial than filing as single.
Parents who are not divorced but living separately might elect not to file as married. In all cases, it’s best to speak with your accountant if you have any concerns about your filing status.
1099 Errors
1099-MISC forms are received for any extra earnings you had during the year. This can be from doing contract work or small jobs. It also must be reported on your tax return.
A 1099-INT or 1099-DIV includes earnings from savings and investments. Depending on your investments, things can get complicated. Some brokerages might not report your earnings to the IRS, but you should definitely include them with your return.
“Check your return to see if it matches the 1099 in your broker files, including cost-basis information — whether that was reported to the IRS or not,” said Robert Aruldoss, senior financial planning research analyst at the Schwab Center for Financial Research.