Do You Know The Major Tax Return Mistakes To Avoid?

Tax season always brings out talk about 1040 EZ forms and W-2s, but most of us are in the dark about what to do with our tax returns even with the long set of directions the IRS puts in with the forms. There is always the option of paying someone else to take care of it, and for many people it is best option. However, most people feel it is a little strange to pay someone to get their money back so they struggle through it on their own. If you worked at only one company and no deductions or supplemental income filling out your taxes is relatively simple, but this is not the case for most people. Most people have numerous deductions, credits, and supplemental income that require extra work when filing out a tax return. While filing out your tax return may not be the most fun thing to do, there are a few precautions that should be taken to avoid extra problems later on.

Check W-2 and 1099 Forms

W-2s and 1099 forms report the income of a taxpayer. The taxpayer receives a copy of this form, but that is not the only place these forms are sent. Companies and employers are also required to submit these forms to the IRS. When you receive your W-2 or 1099 it is important to check the numbers against your own records and make sure they are correct. You will need to inform your employer so that they can change the information with the IRS. If this is not done and there are discrepancies between the information the government has and the information you report, it could cause a lot of problems later on.

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