7 mistakes to avoid while filing taxes online
Filing taxes is a complicated process, due to which several individuals make mistakes while filling out their forms. Though making errors is normal, doing so on a tax form can cost a lot of money. People may miss out on a larger refund and even pay higher taxes, interest, and penalties. Some mistakes may also invite Internal Revenue Service (IRS) audits. Here are some errors one should avoid while filing taxes.
Delayed submission
When one delays the submission of their tax returns, they may have to pay an additional fee. This penalty can rise to 5% of the tax amount due for each month that the tax return paperwork is delayed. The penalty percentage may increase based on how long one takes to file their return. But if an individual does miss the deadline, rather than doing nothing, they can request an extension by filing Form 4868 before the tax-filing deadline to get more time.
Entering the wrong Social Security number
The IRS uses a social security number to verify information obtained from an employee against details provided by the bank, employer, and other establishments. Therefore, adding inaccurate Social Security numbers by accident may interfere with the filing process and lead to the claim getting rejected.