Business Bulletin: Tax return mistakes to avoid in 2019

FILE- This July 24, 2018, file photo shows a portion of the 1040 U.S. Individual Income Tax Return form for 2018 in New York. The Child Tax Credit changed considerably in 2018. (AP Photo/Mark Lennihan, File)
FILE- This July 24, 2018, file photo shows a portion of the 1040 U.S. Individual Income Tax Return form for 2018 in New York. The Child Tax Credit changed considerably in 2018. (AP Photo/Mark Lennihan, File)

Question: With all the tax reform changes that will affect my 2018 tax filing I am worried that I might make a mistake. Does the BBB have any advice I might need to know for filing my 2018 taxes?

In 2018, lawmakers approved the biggest changes to tax law in over a decade. Those changes mean many individuals and families will get a bigger return this year, but only if they fill out their tax returns correctly.

photo Jim Winsett of the BBB.

If you make a mistake on your tax return for 2018, you could pay more in taxes, receive less refund money or create a red flag that leads to an audit. Let's look at some of the most common mistakes so you can steer clear of them when you file.

Not Filing Electronically. When you use software to fill out your tax return, the software does the calculating for you. It also checks for blank fields and asks about deductions you might have missed. It's harder to make math mistakes, and you can't submit it until you complete all the required information.

No one has to decipher your handwriting. If you use the same software year after year, it cross-references data with previous years and imports your tax history. The most popular online tax preparation providers report they've updated for tax code changes and they're ready to process your return.

Math Errors. Even if you use tax software, you still have to enter the right numbers in the first place. Be careful when keying in income from your W-2s, 1099s and other statements. The IRS double-checks those forms. If they find a mistake, they could correct it in a way that isn't in your favor.

If you submit a paper return, check and double check for calculation errors. Taxpayers commonly make mistakes figuring entries like taxable income, withholding and estimated payments.

Misspelled Names. If you misspell your spouse or dependents' names, the IRS could be slow in processing your return. If you got married or divorced, make sure you notify the social security administration of your name change to avoid a tax return processing delay.

Incorrect Deposit Information. If you e-file your return comes quickly - if you supply the correct account information for direct deposit. Taxpayers can choose to have their return deposited to multiple accounts, but the more numbers you have to enter, the more likely it is you'll mis-key.

Filing After the Deadline. In 2019, the filing deadline is April 15. That's a Monday, and it isn't a holiday. If you miss it, you'll likely pay late or non-filing penalties. Make sure your paper return is postmarked April 15 or that you e-file by midnight on that date.

If you're looking for a Southeast Tennessee or Northwest Georgia bookkeeper or accountant, it's important to find one you can trust. The Better Business Bureau serving Southeast Tennessee and Northwest Georgia is your starting point for finding trustworthy businesses and reading online reviews.

For more consumer tips see bbb.org or bbb.org/Chattanooga.

Jim Winsett is president of the Better Business Bureau in Chattanooga.

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