Speedy Online Tax Services
Online Tax Services Help to Avoid These 7 Tax Return Blunders
If there’s one thing that we can count on, it’s that tax laws are constantly changing. To help us to cope, the better online tax services, such as ours at HBS Financial Group, Ltd., offer assistance to avoid the seven most common tax blunders.
These mistakes are not only made by first time tax filers with a very simple return, but also by those who file more complex tax returns. It is our hope that listing these seven types of errors will help you to avoid them.
Failure to report all taxable income
This is probably the area that so many taxpayers fail to avoid. Those who receive a W-2 from an employer generally report that income. But suppose you are working as a consultant or perhaps some other sideline business? For whatever reason, you might not receive a Form 1099-MISC for those earnings. Online tax services like ours, asks you about those forms.
However, that income is taxable and even though you may not have received a 1099-MISC, it must be reported on your tax return. Generally, it must be reported on a Schedule C as self-employment income. Our DIY online tax services program will ask you the right questions so the income is reported. It will also make sure that you report any expenses that you paid for the gig work, thereby reducing the taxable portion. All calculations are automatic.
Missing out on IRA contribution limits
This is the one area where you can pay yourself and also deduct it on your tax return. Making contributions’ to a traditional IRA can be deductible, providing your gross income doesn’t hit the top limits. In addition, those who are age 50 or older are able to contribute $1,000.00 more.
Entering incorrect routing & bank account numbers
These numbers need to be reviewed and reviewed again to be sure they’re correct. If you have a refund due and one of the numbers is wrong, or even transposed, your refund is returned by your bank & then the hassle begins when you try to track it down. If you have a balance due and setup a direct debit, the same thing happens. The IRS doesn’t get paid and by the time you are notified, interest and penalties may apply.
Using an incorrect SSN or a name change by a spouse
As soon as your tax return is transmitted, the very first area that is verified are the social security numbers and names. If any of the SSN’s or names differ from what the Social Security Administration has, the return is rejected. Frequently, a newly married couple may not have reported a name change for the spouse and used it on the tax return. Always verify the SSN’s and names every year to be sure no errors have popped up.
Paying high tax preparation fees
With the new Tax Reform, many taxpayers will be filing a fairly simple return using the increased standard deduction. Some still insist in taking that simple return to a professional tax preparer. For whatever reason, they pay very high tax preparation fees when they don’t have to.
As an example, at our online tax services site, HBS Financial Group, Ltd., we offer flat rate pricing. From the very simple return to a very complex one, everyone pays a flat fee of $25. That low fee includes the federal and resident state returns plus e-filing of both.
Without a doubt, electronic tax filing is the safest and most accurate way to file your taxes. In addition to the speed, you have a receipt when the IRS and your state accepts the tax return for processing. This past tax season and this current one, the IRS is accepting and processing tax returns in under 24 hours. That means faster refunds. Online tax services, such as ours, stays on top of all IRS notices and recommendations.
Does this sound familiar? Any time that we wait and then have to rush, the chance of making mistakes increases. Filing income taxes is one of the more important items that we have to do each year. Not having to rush and taking a little extra time to make sure we didn’t omit something is crucial.
Start getting organized early to be sure that you have all of the forms and information you need to file your taxes. Compare the forms you received this year to your last year’s tax return as a guide. If you have had any type of life changes, it may take more time to get everything ready to file.
We urge you to take the extra time to review your tax return before filing. Visit one of the best online tax services, HBS Financial Group, Ltd., and see just how fast and easy it can be to do your taxes online.