Common Mistakes to Avoid When Filing Your Taxes

You might know what to expect if you're filing your tax return after bankruptcy, even if you're not expecting a refund. As a bankruptcy lawyer, I try to make sure my clients are getting all of their tax forms filled out properly.

We've already discussed the 1099 (c ) and taxes after bankruptcy, but you want to make sure you avoid these common income tax mistakes, as reported by the IRS.

1. Claiming the wrong filing status. Your filing status can determine your fate for many different tax benefits. Be sure you're using your marital status as of December 31. If you claim the wrong status accidently, it can make you ineligible for earned-income credit, the child tax credit, and exemptions for dependents.

2. Writing down the incorrect Social Security numbers. Make sure you double-check your Social Security number, and make sure you use the right Social Security numbers for all of your dependents. The IRS' computer may not recognize that you switched your son's SSN for your daughter's, and that could cause you to lose your exemptions, credits or deductions.

3. Forgetting to sign and date your return. You haven't filed your tax return if you haven't signed it. If you're filing jointly, BOTH spouses need to sign and date. This is one of the most reoccurring mistakes seen by the IRS.

4. Claiming ineligible dependents, you want to make sure they qualify. You could lose your exemptions if they don't have Social Security numbers.

5. Failing to report domestic workers. This is illegal, and even though some individuals do this to avoid paying taxes on their workers, it is something you want to avoid.

6. Leaving out a portion of your income. Even if you don't receive a W-2 from your employer, or you worked as a 1099, these are all amounts that need to be reported.

Make sure you aren't making these common errors, be sure to double check your math and all of the information on your form. Through penalties and fines you risk more than if you just double check your forms. If you have any questions, you should always consult either the IRS's website or a qualified tax preparer. If you are a client of ours and need documents for your tax return, please call our client line at 314-436-3300, or email questions@castlelaw.net.


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James Brown is a personal bankruptcy attorney in St. Louis, Missouri. He has filed over 30,000 bankruptcy cases and published many books and articles. You can request his free Missouri and Illinois bankruptcy guide for the best tips on how to prepare for your bankruptcy and find a great bankruptcy attorney.