As the deadline to file taxes approaches, taxpayers across the country are preparing returns. It starts from people entering the wrong Social Security numbers and forgetting to sign the tax return entirely. Tax filing season can be a stressful time, people who often hurry to submit their information, and mistakes are abound. But fixing errors isn’t just knowing what went wrong and how to solve the problem. In this article, we are going to discuss how to correct errors on taxes.
The Most Common Errors on Taxes
All you need to know about the most common mistakes people make when filing their taxes, how to correct errors on taxes, and neglecting to include necessary information will be discussed further. Sometimes, tax filers frequently forget to give correct routing numbers for their bank accounts. Taxpayers filing returns electronically will likely be notified right away of their mistakes. Another frequent error occurs when people file to get an extension and assume they have more time to pay their tax bills.
The IRS wants its money by April 15 and penalties for late payment are 0.5% of a person’s unpaid taxes. It can grow up to 25% if other mistakes include using the wrong filing status. So, people who are single filers will mark themselves under the head of household status on the returns. Filing under this status gives better tax benefits than they would get under other statuses.
The IRS will know because the head of the household requires a qualifying dependent. Those who are filing their taxes electronically, tax preparation software will alert people to errors. The IRS will reject a tax return that has mistakes, giving the filer a chance to correct the error. Being alerted can take longer, delaying the delivery of an eventual refund.
Is There a Penalty for Incorrect Tax Returns?
Penalties fall to people who make an error that causes them to underpay on their taxes. When a person claims a head of the household status incorrectly they receive more tax benefits. Thus, they end up paying less than they owe to their unpaid balance each month plus interest.
How Can You Re-file Your Taxes if You Made a Mistake?
All you need to know about how to correct errors on taxes can’t automatically be solved. Through the electronic filing process, you can file an amended tax return using form 1040X. Errors that call for filing an amended tax return include filing under the wrong status which also includes failing to report some income and claiming the wrong deduction.
The deadline to file an amended return is three years from the date you filed the original return. Moreover, if there are mistakes such as math errors, the IRS will alert the filer.