5 Mistakes Everyone Makes Their First Time Filing Taxes
As a first-time filer, you may be nervous about sending in all your forms. Even if you make a mistake, donâ€™t worry. Most first timers make at least one of the following errors.
- Using the Wrong Identification Number
Your tax identification number helps track how much you pay into the IRS. Whether you have a social security number or an individual tax identification number, you need to make sure to put it on your forms correctly.
- Claiming an Improper Exemption
An exemption helps reduce your taxable income, but you cannot always file for one. Many first-time filers end up claiming an exemption when they should not.
- Messing Up the Math
Many online forms will make the calculations for you. However, if you choose to fill out a paper form, you have to do all the math on your own. First timers often mess up on the math because of the sheer volume of what there is to calculate.
- Waiting Too Long
You know you have until April 15th to file your taxes, so you may not feel the rush to get in and get your forms filled out early. However, if you have to fill out a W7 form in addition to other documents, you may want to get in as early as you can. If you wait too long to go in, you may end up needing to get an extension or filing your taxes late.
- Forgetting Deductions and Credits
Taking deductions on your taxes can help you lower your taxable income. Credits, on the other hand, reduce your tax liability. While you may not qualify for every deduction and credit available, you should try to use any that you can. Many first-time filers overlook these money-saving perks because they are simply unaware that the credits and deductions exist.
Whether you are filing for an ITIN renewal or sending in your taxes for the first time, you want to be careful to not make mistakes. Use online tax forms to make sure you don’t make any mistakes this tax season.