A taxpayer usually files for tax refunds for various reasons, including acquiring a big refund each year or to lower the tax bill and help save on a paycheck. In either case, every aspect of the documentation and process needs to be right for the refund to work. A single mistake could mean a stalled refund, or the taxpayer might receive a letter from the IRS about the filing error.

Mathematical errors
One of the most common tax return mistakes is mathematical errors. A single error in decimal points, an extra zero, or a missing zero in the document could hamper one’s return. Even minute addition or subtraction errors could delay one’s refund or result in one getting a smaller refund than they were expecting. To avoid these issues, one should have an expert handle the calculation process. Additionally, online calculators could check their math and get accurate results within seconds. Still, despite the benefits of online tools, it is best to get it cross-checked by an accountant just to be safe.

Claiming incorrect credits or debits
It is important to understand the difference between tax deductions and tax credits when managing tax returns. A deduction reduces the amount of income one pays tax on. On the contrary, a credit decreases the tax owed. While both are useful for managing tax returns, one must ensure they do not file for the wrong type. For instance, interest rate deduction on a student loan is only available to taxpayers who earn below a certain amount. If one’s income exceeds the threshold, they are not eligible to subtract the interest paid on a student loan. Those who do so accidentally might have their returns flagged by the IRS, and they will have to pay the outstanding taxes, with interest and a penalty.

Entering the wrong bank account number
The most ideal and popular method to get a refund is by direct deposit. However, as simple as it sounds, people usually make an error with the digits when entering the bank account number. For obvious reasons, using the wrong account number will cause a delay in one’s refund. For instance, adding an extra number to the account number could cause it to be diverted to another bank account or none at all. In either case, it will take some time to resolve the issue with the IRS and reclaim the tax refund.

Errors in Social Security numbers
The IRS uses the Social Security number to verify all information submitted by an employee. The details are cross-verified against information collected from other establishments, including the bank and the employer. So, using the incorrect Social Security number on a tax refund document or entering an incorrect digit could distort the verification process. As a result, the IRS might flag the refund, and one might have to spend more time trying to resolve the issue.

Picking the incorrect filing status
There are five tax filing status types that one should be mindful of. These include head of household, married filing jointly, qualified widow(er), married filing separately, and single. While these statuses are straightforward, some might get it wrong. For instance, an individual who is unmarried and has no dependents will need to use the “single” filing status. But, for married people, determining whether they should file jointly or separately can be challenging. Similarly, the “head of household” status might be confusing for many. Choosing the wrong status could mean one gets less of a refund than they are eligible for. Additionally, it could lead to the IRS flagging the return, which might delay the entire process. If an individual is uncertain about the correct filing status, they could speak to a tax attorney who could explain the options better.

Entering the wrong AGI from the previous year
When an individual files for a tax refund electronically, the IRS uses the adjusted gross income (AGI) from the previous year to verify one’s identity. This means one will need the precise AGI from last year’s tax return to file the current year’s taxes online. If the number is inaccurate, the IRS might reject the tax return, and one will have to go through the filing process again. Those who have lost the tax return from the previous year could look up their AGI by requesting an instant transcript on the IRS website after creating a free IRS account. If an individual has not filed taxes for the previous year, they should enter $0 for the previous year’s AGI while filing the current year’s return.

Not signing the return
One might get all the tax refund details right and still come across a delay because of this one mistake. A tax return is not valid unless it is signed. Filing a tax return without a signature may cause the IRS to reject the return and direct the individual to file again, making it a time-consuming process. This depends on whether one files the return online or via paper return mailed in. If an individual is filing a joint return with their spouse, they must both sign the return for it to be considered valid.