Common Tax Filing Mistakes Even Smart People Make
I saw this list at DailyFinance.com and thought it might help you if you prepare your own taxes. According to one group of tax experts, here are the most common tax return mistakes:
- Entering the wrong Social Security number
- Putting the right information on the wrong line
- Forgetting to sign and date forms before mailing them
- Failing to claim dependents or claiming ones you are not entitled to claim
- Failing to report stock sold at a loss (the IRS assumes the entire sales price was a gain!)
- Errors on Schedule E, the one used to report rental property, royalties, partnerships income and expenses, estate income and expenses and S-Corp income and expenses.
The experts note that these mistakes often happen because tax payers are hurried and harried because they wait until the last minute to prepare their forms. Do yourself a favor: start your tax return preparation early to give yourself enough time to check your work and/or get answers to questions.