Love and Taxes

Happy Valentine’s Day!

Of course the other thing coming soon is Tax Day on April 17, 2012 – You might be thinking it’s the 15th and it usually is – however- this year the 15th lands on a Sunday and Monday the 16th happens to be Emancipation Day in the District of Columbia.  So April 17th is the date for all Federal Tax returns this year.

Thought I’d send you some tax tips in case you’re the kind of person who manages to get them done early (despite the two day ‘extension’).

Here are seven of the most common errors on tax returns. If you can avoid these errors, you’ll greatly minimize the chance of an audit … and NOBODY wants to go through that!

  1. Mistakes on social security numbers top the list of tax return errors. Make sure all the SSNs on the return are correct. And it’s a good idea to put your SSN on each page of the return in case the pages get separated at the IRS.
  2. Math errors are another common mistake – especially when subtracting. If you’re not using a computer or tax-preparer carefully check the math.
  3. Forgetting to sign and date the return. Yeah, happens all the time. And remember for a married couple filing a joint return, both must sign.
  4. Failing to attach all the paperwork – like W-2s.
  5. Putting income in the wrong place. This is interesting. If you record dividend income as interest income – like for mutual funds – the IRS computers will probably see that as under-reporting dividend income, because they get that information from the mutual fund companies. Then the hassles begin.
  6. Failing to file because you can’t pay in full. BIG MISTAKE! File your return on time, even if you can’t pay the tax due. Willful failure to file is a federal crime. You’ll only pay interest on amounts past due.
  7. Failing to file when no tax is due. I guess it happens. You’ve got to file the return whether you owe any money or not.

There’s lots of information on the Internet to help you avoid problems. Just do a search on “common tax errors”.

All of us here at Hejny Insurance Agency wish you a joyous tax season! OK … how about a reasonably fun tax season? OK … good luck, we hope you get through it. How’s that?

Seriously, though, I hope this information was helpful to you. Thanks for your business!