5 Critical Mistakes to Avoid on Your Tax Return

Got your mind on your money, and your money on your mind? If you want to get the most out of your tax return this year (and avoid the dreaded IRS audit), avoid making these critical mistakes:

Missing the deadline.

First things first: know your deadline! The IRS will begin accepting tax returns on Monday, January 23rd, 2017. The deadline (also known as National Tax Day) is Tuesday, April 18th. If you wish to apply for a six-month extension, you must do so by this day. However, any taxes you owe are still due on April 18th.

Math miscalculations.

This is the single most common mistake on tax returns each year. Whether you made an error in your calculations or while transferring your numbers, you can bet the IRS will quickly detect your mistake. Having your taxes prepared by a professional can help minimize this risk.

Misspelled names.

The IRS cares about numbers, but names are important too. If the name of the taxpayer, spouse, or dependents doesn’t match what the IRS has on file, your return could be significantly delayed.

Forgetting additional income.

You’ve included your wages from your full-time job, but you could be forgetting about these common sources of additional income:

• Part-time or side jobs
• Job that you only worked at the start of the year (if you worked just one day in 2016, it counts!)
• Savings and investment accounts
• Unemployment benefits
• Jury duty pay

Wrong bank account numbers.

Imagine this: you’ve double checked your numbers. Triple checked, even. Everything is right and you are ready to submit your form to the IRS. You opt for the direct deposit, and enter the wrong routing or bank account number. Don’t let this happen to you – make sure your return is going to the right place!

Having an experienced tax professional by your side will not only ease your stress and help you avoid making mistakes, they can find additional deductions and credits that you may not be aware of. Trust American Investment Planners, LLC to help you file your tax return this season.

To schedule an appointment with one of our tax professionals, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Tax Mistakes You Need To Avoid

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Considering that tax season is in full swing and is something we are heavily involved in, we'd like to share as many tips and as much information as we can to help you get through April 18th without any major hiccups - that includes sharing some common tax mistakes. Below, take a look at some tax no-nos that many of us are guilty of doing, then make a commitment to avoid them yourself:

Procrastinating: We all lead busy lives, and we know that finding time to make an appointment with your accountant can sometimes seem impossible with everything else you have going on. But procrastinating is not the answer when it comes to your taxes. If you wait too long, you could risk missing the deadline and therefore face some hefty penalties.

Assuming: Although it would make things much less complicated, it isn't safe to assume that deductions, exemptions or any other number from your tax return last year will stay the same. Even if for the most part this year's numbers are an accurate reflection of last year, you'll want to make sure you look over everything first since any changes or updates could have a substantial impact on your return.

Forgetting documents: We're sure you've heard that your W-2 form from your employer is one of the most important documents you need, but keep in mind that it may not be the only document you need. For example, if you receive an income from additional sources, you may need to report it on a 1099 form. If you aren't sure which forms you need, take a look at our tax library or contact us for more information.

Failing to check things twice: Whether you're filing your taxes yourself or are working with a professional, always be sure to check over everything more than once. Minor math mistakes or errors in your name (if you recently got married, for instance) can make big differences, so don't just assume that everything is correct without checking.

Not making updates: Changes to your household status such as children moving out or in must be reported - not making these updates could cause you to over or under pay in taxes, neither of which you want to have to deal with. If you have a unique living situation or are unsure if you can still claim your child as a dependent, be sure to contact a financial planner like ourselves.

So what's the secret to a successful tax filing process? Don't go through it alone! By working with a tax planner like those here at American Investment Planners LLC, you don't have to worry about all of the intricate details - we'll take care of everything for you, which means you can also rest assured that everything will be done right the first time.

To learn more about our tax planning services and how we can help you get through tax season this year, please give us a call at (516) 932-5130.