Photo: Nataliya Vaitkevich / Pexels
Photo: Nataliya Vaitkevich / Pexels
The Internal Revenue Service (IRS) reminded taxpayers check your tax returns for common errors that could delay refunds or affect normal processing.
The first recommendation is remember that the 17 May is the last day to fulfill this commitment and then some ways to avoid errors in the tax return:
File electronically , either through Free File from the IRS or other electronic filing service providers, reduces the chances of making mistakes and maximizes deductions to reduce taxes on owed at the same time. The software automatically applies the most recent tax laws, verifies available credits or deductions, makes the calculations and asks taxpayers for all the required information.
IRS recommends have your income documents at hand before starting your tax return . Some examples are Forms W-2, 1099 – MISC or 1099 – NEC. Returns with insufficient income may result in penalties and interest .
Provide each person’s Social Security number (SSN) and name exactly as printed on the Social Security card, whether personal or dependent. If the dependent or spouse does not have and is not eligible to obtain an SSN, please provide the Individual Tax Identification Number (ITIN) instead of a SSN.
If the taxpayer is not sure of your filing status, the Interactive Tax Assistant on IRS.gov can help you choose the correct status, especially if more than one filing status applies.
Correctly answer the question about virtual currency
The Form 1040 2020 asks if during 2020, a person received, sold, sent, exchanged or acquired any financial interest in any virtual currency. If the only transactions during 1200 were virtual currency purchases, there is no obligation to answer “yes” to the question.
Who declares on paper must check the correct address to know where to file the return at IRS.gov or in the form instructions to avoid processing delays. The IRS encourages taxpayers and tax professionals to file their returns electronically, if possible.
Requesting direct deposit of a federal refund to one, two, or even three accounts is convenient and allows the taxpayer to access their money faster . It is very important that the data is accurate because the wrong numbers can cause the refund to be delayed or deposited to the wrong account.
In case of filing a joint return, both spouses must sign and date the declaration. Electronic taxpayers can do so using a personal identification number (PIN) selected by themselves.
Taxpayers must do a copy of your signed statement and all attachments for your records.
If necessary, the taxpayers who cannot meet the deadline of 17 May can request an automatic filing extension until 15 from October and avoid late filing fines. You can use the Free File or the Form 4868 .
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