On tax forms, here’s what’s most important
For those filing their tax forms electronically – the deadline for paper has officially passed – mistakes and miscalculations can cause penalties and missed deductions, as well as an audit that may only find more issues with tax forms. While it’s important to check everything when filling out tax forms, there are some areas that require attention immediately. One tax expert explains in a Wall Street Journal article what those are.
Basics, such as your name and Social Security number should be verified. Especially for those filing 1099 forms, make sure your name spelling matches what is on your Social Security account, and for those that have changed their name, this is especially true.
The same goes with SSNs. “Make sure taxpayer ID numbers on Forms 1098 and 1099 are correct. People in business often forget to give their customers or clients their business ID number. So the 1099s get issued to the wrong entity.”
For businesses using a 1099-processing service, having information uploaded digitally can help ensure that numbers are kept track of so if there is a mistake with an employees form, an employer can go back and check quickly and easily.
Checking numbers also goes for checking accounts, especially when a filer is receiving a refund. Make sure that your routing and account number is correct because if another person gets your tax refund, it’s technically legal.
When hiring someone to do your taxes, make sure that all information is correct before sent to the IRS. If there is a mistake or even tax fraud, it would be in your name, even if you didn’t commit the crime.