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Common Costly Tax Errors In Today's Consumer Watch Report
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Story By: Larry Stine

 

 

 
 
 
   
   
  Originally Published on: 4/6/2014

With about two weeks to go before the filing deadline, it's crunch time for taxpayers who haven't yet completed, or started, a tax return. And that last-minute sprint to finish can sometimes lead to costly mistakes. Karin Caifa looks at some of the most common costly errors, in today's Consumer Watch. In the final days before the federal income tax filing deadline, things can get stressful. The IRS sees some of the same costly mistakes each year, so taxpayers should take a moment to review them to avoid them. According to Kiplinger's Personal Finance, taxpayers should choose wisely among the options for filing status, filing as single instead of head of household makes a difference. So can choosing between married filing jointly or married filing separately. Using the wrong status could result in a return being rejected, or a delayed refund. Math errors should be less common now that so many Americans use tax preparation software. But if a math mistakemeans you underpay the IRS, you'll owe the additional amount, plus any interest since the due date for that return. Speaking of interest, it starts to pile up after the April 15 deadline whether an extension is filed or not. If you're not ready to file and think you're going to ow money, at least file the appropriate paperwork and try to estimate what you owe. And finally, too much withholding is a mistake too. It's great to get a big refund in the spring, but wouldn't it be better to have a little extra money in your paycheck throughout the year? To adjust withholding going forward, revise and submit a n W-4 for to your employer.

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