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2. Mistake: Mistyping bank accounts and personal information. Believe it or not, incorrect bank account numbers or personal information - like Social Security Numbers - is one of the main reasons tax returns are rejected. Using a nickname or a shortened version of your legal name also lands near the top of the list.
How to avoid the error: Double - or triple - check any personal or bank account information before you submit your completed tax return. "If you need help figuring out account information, don't be afraid to ask your bank for assistance," Jaeger says.
3. Mistake: Paying too much to file your taxes. Whether you tap a tax professional or choose a DIY tax provider that charges an arm and a leg for their product, paying too much to file your return is a mistake.
How to avoid the error: Fortunately, filers have more affordable options to choose from. When looking for DIY options, do some comparison shopping. The leading tax preparation software providers offer similar features and benefits, but the price points can widely vary. In many cases, prices increase as the filing deadline nears. Look for a provider like TaxAct that not only offers a low price, but also guarantees your price won't increase if you start your online return but wait to file later.
4. Mistake: Not e-filing. While 91 percent of tax returns were e-filed in 2016, there are still filers who file a paper return. Going the pencil and paper route often means longer tax return processing times.
How to avoid the error: Electronic filing (e-filing) is the quickest and most accurate way to file your tax return. In
"When the IRS receives your tax return, one of the first steps the agency takes is to check the figures to make sure they add up."
fact, the IRS typically processes e-filed returns within 48 hours. If you're due a refund, you'll get it quicker if you e-file and choose direct deposit.
5. Mistake: Incorrect calculations. When the IRS receives your tax return, one of the first steps the agency takes is to check the figures to make sure they add up. Unfortunately, it's easy to miscalculate numbers - especially if you're in a rush or aren't sure what to add or subtract.
How to avoid the error: First, take your time and double check all numbers. Second, consider using DIY tax software so you don't have to do the math on your own.
6. Mistake: Using the wrong filing status. Choosing the wrong filing status, like Head of Household instead of Single, can have a great impact on your tax rates, the number of personal exemptions you can claim, your qualifications for certain tax deductions, credits and more.
How to avoid the error: Before starting your return, review the five different filing statuses to help you select the one most appropriate for your tax situation. Carefully selecting the right one will help you feel confident you're taking the right steps to maximize your tax outcome.