Investor Forum
Avoid Mistakes in Last-Minute Tax Prep
04/07/05 - 07:53 AM EDT
With only eight days left to get your tax return, or extension, in on time -- or at least postmarked -- it's time to start scrambling. But in your haste to get things done, let's make sure you don't make senseless mistakes or omissions that could hold up the processing of your return. Here are a few key reminders.
Give In to Technology -- Please!
Electronically file your tax return. It will save you time and errors. For whatever reason, about 17 million people are still doing their returns with pen and paper. And I'm not sure why. It leaves too much room for silly errors, which can hold up the processing of your tax return for weeks. Things like incorrect Social Security numbers or overlooking the kids' SSI numbers are big culprits. Same goes for math errors or forgetting to sign your return. So do yourself a favor, and let technology help. Use a tax preparation program to avoid math errors and then electronically file your return. Your return can't be processed unless all that minor stuff is complete and accurate. Big note to people who changed their name in 2004: If you changed your last name, make sure the Social Security Administration knows. If your Social Security number does not match your new name, you will be unable to e-file your return. Then have your refund directly deposited into your checking account. You'll get your money back sooner and avoid potential lost-in-the-mail headaches. So be sure to have your checking account number and its corresponding routing number ready when you fill out your return. If you must mail your return, please be sure to sign it and include all documents that have withholding tax on them, like W-2s or 1099s. Again, missing documentation is a big complaint from the IRS.These forgotten Internet stocks are being accumulated by hedge funds.
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