As a bankruptcy lawyer, I try to make sure my clients are getting all of their tax forms filled out properly. If you’re filing your tax return after a bankruptcy (and even if you’re not expecting a refund), you probably know what to expect. But just like when filing for bankruptcy, you want to double-check everything you submit to avoid problems later.
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. If you haven’t signed it, then you haven’t filed your tax return. If you’re filing jointly, BOTH spouses need to sign and date. This is one of the top errors the IRS sees.
4. Claiming ineligible dependents, you want to make sure they qualify. If they don’t have Social Security numbers then you could lose your exemptions.
5. Failing to report domestic workers. Individuals do this to avoid paying certain taxes on their workers, but it is illegal, so it is definitely 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. Otherwise, you risk way more than it’s worth in penalties and fines. 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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