Every year, many taxpayers may make mistakes on their returns that cause IRS processing delays. Some common errors can also result in paying too much or too little tax.
The following mistakes often cause filers to pay the wrong amount of tax:
Incorrectly Figuring Credits or Deductions:
Once you determine that you qualify for a tax deduction or credit, you must carefully compute the amount that you can claim. Many taxpayers fail to consider income limitations (including the calculations that must be made if your income falls within a “phase-out” range) and other restrictions. Others claim less than they could, or miss out on deductions and credits entirely by not filing the required forms and schedules.
Those who file their IRS returns using individual tax identification numbers (ITINs) must keep in mind that ITINs periodically expire. Although a return filed with an expired ITIN may be accepted, the IRS generally will not allow any of the exemptions or tax credits claimed. The taxpayer must renew their ITIN in order to obtain the full refund that they are owed.
To avoid costly mistakes, the IRS recommends having a tax professional prepare or check your return and file it electronically. Our tax pros at RTW Xxact might also help you claim deductions and credits that you would otherwise miss. Contact us today email@example.com.