#revisedreturnforay2019-20

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Rushing to file your tax return increases the chances of error, which can delay your refund, trigger an audit or cause you to have to pay more later. Here are five common tax mistakes on tax returns and how to avoid them.

1. Incorrect Social Security Numbers They must match perfectly with what’s on Social Security cards because the IRS compares tax return information with the Social Security Administration’s database.

2. Misspelled names All names on returns must also match Social Security cards. Pay special attention to dependents’ last names, as those tend to be misspelled.

3. Filing status errors There are five filing status options. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.

Choosing the best filing status for your situation is one of the first steps in filing your federal income tax return.

4. Miscalculations In addition to math errors, taxpayers often miscalculate amounts related to their taxable income, withholding and estimated tax payments, the Earned Income Tax Credit, the Child and Dependent Care Credit, the standard deduction for age 65 and older or blind, and taxable amounts of Social Security benefits.

5. Incorrect bank account numbers for direct deposit or payments Double check the routing and account numbers for your financial institution so that you either receive your refund in a timely fashion or pay your balance on time (thus avoiding penalties and interest).

Remember: If you over-claim your deductions and get a bigger tax refund than you’re entitled to, the ATO can ask you to repay some or all of your refund – plus interest charges and possible penalties as well. That also goes for claiming big deductions that you can’t prove. If you have a question about a particular deduction or expense you’d like to claim, contact your Etax Accountant by clicking ‘My Messages’ when logged-in, or when you fill out your tax return. You’ll get expert advice to ensure you get the best refund possible and to lodge your return legally & correctly.