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8 mistakes to avoid while filing tax returns
The end of the financial year sees people rushing to file income tax returns in adherence to the strict guidelines of the Internal Revenue Service (IRS). The guidelines are meant to ensure a smooth and quick tax filing process. IRS also offers ample time and information to get the job done. However, one can still make missteps in the return filing process, leading to delays and rejection. So, here are common mistakes to avoid: 1. Filing the returns too early One might enjoy getting work done before deadlines. However, it isn’t the best idea when filing tax returns, as the latest tax forms could be issued later than usual. So, filing tax returns too early could result in one missing out on any vital updates to the process or documentation, which could delay the whole tax refund process. So, one should ensure they have the latest information before filing for returns. 2. Choosing the wrong filing status One of the most common mistakes in filing income tax returns is choosing the incorrect filing status. There are five tax filing statuses to choose from: head of household, married filing jointly, qualified widow(er), married filing separately, and single. The status determines the tax bracket, tax credits, and amount of standard deductions one can claim.
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