It’s tax time and the deadline to file your return is just around the corner. Every year, many people are tempted to rush through preparing their returns and make errors that cost them. Making a mistake on your tax return can cost you money, a delay in getting your refund, or even worse, unexpected penalties and interest. Before you mail or e-file your tax return for the 2020 tax season, here are some common do-it-yourself tax filing mistakes to double-check for:
Mathematical mistakes are common on tax returns, especially when prepared by hand using a paper return. It’s easy to accidentally transpose a figure, miscalculate a list of expenses or miscalculate percentages. Double and triple check your math to confirm your calculations or consult with a tax services professional to help you ensure your tax return is accurate and reduce tax filing stress.
Alternatively, you can prepare your taxes using tax software to make the process much easier and reduce the chance of mathematical errors. Here’s a list of Canada Revenue Agency (CRA) certified tax software.
Believe it or not, providing the wrong name on your tax return is a common mistake many people make. Be sure to double-check that your name, your spouse’s name and the names of all your dependents match the names on everybody’s Social Security cards. If you recently got married or divorced and legally changed your last name, be sure to contact the Social Security Administration and get it changed. In the meantime, you need to use the name as it appears on your car
Incorrect Social Security Numbers
Be sure the Social Security numbers (SSNs) you provide for you, your spouse, and all your dependents are accurate and appear exactly as it appears on your Social Security card. If you are filing your tax return on paper, write the numbers legibly and be sure they are easy to read.
Incorrect Account Number/Check Direct Deposit Information
If you’ve requested a direct deposit refund from the CRA, take the time to review for typos. Make sure your routing and account numbers for your financial institution are correct so that there are no delays in receiving your refund.
Eliminate tax season stress and consult with a tax services professional to help you with the accuracy of the information on your tax return. Cross & Company Chartered Professional Accountants offer Nanaimo income tax services for both businesses and personal. Make sure there are no errors or omissions in your reported income and book an appointment today to speak to one of our professional accountants.