As tax season draws to a close, it’s important to review your tax return carefully before submitting it. A thorough review can help you catch errors, ensure accuracy, and maximize your refund or minimize your liability. Here’s a guide on what to look for when reviewing your tax return.

Personal Information

Start by verifying that all personal information is correct. This includes your name, Social Security number, and address. If you’re filing jointly, check that your spouse’s information is also accurate. Mistakes in personal information can lead to delays in processing your return and receiving your refund.

Filing Status

Ensure that you’ve selected the correct filing status. The right filing status can significantly impact your tax liability, deductions, and credits. Common filing statuses include:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er)

Choosing the correct status can help you take full advantage of available tax benefits.

Income Reporting

Double-check that all sources of income are accurately reported. This includes:

• W-2 Forms: Verify the income and withholding amounts from all employers.
• 1099 Forms: Ensure income from freelance work, interest, dividends, and other sources are correctly reported.
• Other Income: Include any additional income, such as rental income, unemployment benefits, or side jobs.

Accurate income reporting helps avoid issues with the IRS and ensures you pay the correct amount of tax.

Deductions and Credits

Review your deductions and credits to ensure you’re claiming all eligible tax benefits. Common deductions and credits to look for include:

• Standard Deduction vs. Itemized Deductions: Determine which option provides the greatest tax benefit. Itemized deductions may include mortgage interest, property taxes, medical expenses, and charitable contributions.
• Earned Income Tax Credit (EITC): For low to moderate-income working individuals and families.
• Child Tax Credit: Provides up to $2,000 per qualifying child under 17.
• Education Credits: The American Opportunity Credit and Lifetime Learning Credit can offset education costs.
• Retirement Contributions: Deductions for contributions to traditional IRAs and 401(k) plans.
• Health Savings Account (HSA) Contributions: Contributions to HSAs are deductible and can reduce your taxable income.

Ensuring all eligible deductions and credits are claimed can reduce your tax liability and increase your refund.

Self-Employment Income and Expenses

If you’re self-employed, review your income and expenses carefully. Make sure all business-related income is reported, and all allowable expenses are deducted. Common self-employment deductions include:

• Home Office Deduction: If you use part of your home exclusively for business, you may qualify for this deduction.
• Vehicle Expenses: Deduct costs associated with using your vehicle for business purposes.
• Office Supplies and Equipment: Expenses for items such as computers, printers, and office supplies.
• Professional Services: Fees paid to accountants, attorneys, and other professionals related to your business.

Accurate reporting of self-employment income and expenses ensures you comply with tax laws and maximize your deductions.

Estimated Tax Payments

If you made estimated tax payments during the year, verify that they are correctly reported on your return. This includes payments made for federal, state, and local taxes. Properly reporting estimated tax payments helps ensure you receive credit for the taxes you’ve already paid.

Check for Errors

Carefully review your return for common errors, such as:

• Math Mistakes: Double-check all calculations or use tax preparation software to minimize errors.
• Missing Signatures: Ensure you sign and date your return. If filing jointly, your spouse must also sign.
• Incorrect Bank Information: If opting for direct deposit, verify your bank account and routing numbers.

Correcting these errors before filing can prevent delays and potential issues with the IRS.

Consult a Tax Professional

If you have a complex tax situation or are unsure about certain aspects of your return, consider consulting a tax professional. They can provide valuable advice, ensure your return is accurate, and help you maximize your tax benefits.

Conclusion

Reviewing your tax return carefully before submitting it is crucial for ensuring accuracy and maximizing your tax benefits. Verify personal information, income reporting, deductions, credits, self-employment income, and estimated tax payments. Check for common errors and consider consulting a tax professional if needed. A thorough review can help you avoid issues with the IRS and ensure you receive the best possible outcome.

Need assistance reviewing your tax return? Schedule a consultation with us today and let us help you ensure your tax return is accurate and complete.