Every year brings its own set of new regulations or revised tax rules. But some basics will stay the same. Unfortunately, those sections can still be the ones that mess taxpayers up! Rushing through any of the steps—and then skipping a final review—can lead to some annoying problems down the line.
Some of these issues are related to whether or not you’re taking the standard deduction approach or working through an itemized return. For that, you need to understand the different qualifications for each credit that you’re claiming. An experienced CPA can help on that front. As for the other common errors, you’ll definitely want to spend a little time reviewing a few critical sections of your tax return.
3 Stages of Reviewing Your Tax Return
Before you jump to file your tax return and check that off your to-do list, it’s a good idea to take a step back and do one last review. You don’t want a silly mistake to delay how your return gets processed. This quick checklist can help you review the key areas of your tax return that are more likely to have some mistakes.
1. General Information
Start with the easiest stage of review first. Your address and Social Security number need to be double- and triple-checked. The same goes for spelling the names of your dependents and other identification details you need to share with the IRS. Don’t let a typo throw everything else off track.
Make sure you’ve marked the correct filing status for the year. Then take a look at the line for your total income. That number should look relatively familiar—not too high, and not too low. Otherwise, you’d need to go back and re-tally your wages, interest, and investment income against your tax return.
2. Adjusted Gross Income Lines
There are a few items in the Adjusted Gross Income section that can get a little tricky depending on your situation. If you’re self-employed, you might need to take a closer look at the self-employment tax line before filing. And individuals paying child support should confirm that the amounts on those lines are entered correctly too.
Educators need to check their deductions for classroom expenses. Students need to follow up on possible student loan interest. Then, to finish up this section, you’d want to go back to your HSA and/or retirement plan contributions.
3. Final Balance
Working through the balance entries one last time will help your 1040 Tax Form be as accurate as possible. When you’re expecting a refund, this final review is even more critical. Please be sure to read through your bank account number to make sure it’s correct for your direct deposit (if that’s what you’ve requested).
Need an Accounting Firm to Help?
Comparing your current tax return with your filing from last year can be another good way to review the various sections of your return. There’s a chance you’ve forgotten a certain schedule that was included in the past. Plus, it’s just nice to be aware of how your circumstances and tax responsibility have changed from year to year.
Along the way, remember that you can always call on a local accounting firm to help! Teaming up with a professional tax preparer is a great way to gain some peace of mind as you get ready to file your return. They can also help you identify deductions you may have missed! If you’d like to get in touch with NSO and Company, please don’t hesitate to call us at (317) 588-3131.