Tax Preparation

The IRS offers free tax aid to file your annual tax return; in addition, there are many software programs now available to assist in e-filing, (filing returns online). However, each year the IRS sees millions of returns with mathematical errors, missing or incomplete information, or failure to claim all deductions. The Better Business Bureau has compiled a few common mistakes to avoid this season.

• Wrong Social Security Numbers. According to the IRS, this number causes the most problems for taxpayers. Be certain to double-check that you, your spouse, and any other dependents you claim have entered their numbers correctly. Married women who have changed their last names and are filing for the first time should have also applied for a name change on their social security cards; if not, the name and number will not match up and could cause problems. You will also need a social security number for a new baby in order to claim the child tax credit. To track down a social security number, contact the Social Security Administration.
• Unsigned Returns. Returns without a signature are considered invalid by the IRS and are returned to the taxpayer.
• Math errors. Review your figures at least twice, and always use a calculator.
• Wrong Tax Table. Those tiny tax tables can be hard to read. Double-check your tables, and use a magnifying glass or ask for help from a spouse or child.
• Earned Income Credit. This income-based tax break is meant to assist low-income workers with or without children. To see if you qualify, check your tax instruction booklet or log onto the IRS website.
• Missing Documents. Be sure to include all necessary forms such as your W-2 employer statements and, if you have investment income, your 1099 statement. Your tax booklet or software should indicate what forms are required, but if you're still not sure, contact the IRS.

Making sure you complete your return correctly while receiving all possible deductions can be complicated. Senior citizens may receive free tax assistance from the American Association of Retired Persons; however, because the tax preparers are all volunteers, they are not usually held responsible for mistakes in information or advice that they give.

For more information contact:

Better Business Bureau
www.bbb.org

American Association of Retired Persons (AARP)
(888) 227-7669
www.aarp.org

Internal Revenue Service (IRS)
(800) 829-1040
www.irs.gov

National Association of Tax Professionals
(800) 558-3402
www.natptax.com

This information is general in nature and is not intended as a reliability report on any company, product, or service.