By Eric Boyum, AAMS®, CKA® A financial advisor with Inspire Advisors
Filing your taxes can feel like navigating a jungle—stressful, confusing, and full of potential missteps. But don’t worry! I’m here to guide you through the thicket of tax season. Today, we’re tackling five common 1040 mistakes and showing you how to avoid them. Let’s turn tax stress into success (and maybe a little laughter along the way).
#5: Not telling the IRS what to do with your refund.
Picture this: You’ve finally filed your taxes, and you’re expecting a sweet refund. But wait—where’s the money? Turns out, if you don’t give the IRS clear instructions, your refund might sit there like a teenager on a Saturday morning—doing absolutely nothing.
The IRS can:
- Apply it to next year’s taxes,
- Deposit it directly into your bank account, or
- Mail you a check.
But they’re not mind readers. Make sure to designate your refund destination. Otherwise, it might gather dust while you wonder where that cash went.
#4: Entering numbers that don’t match your forms.
The IRS is like your favorite high school math teacher—they’re obsessed with accuracy. If your W-2 says $52,348, don’t round it to $53,000 just because you like even numbers. (Nice try!)
Every digit on your 1040 must match your official forms. Think of the IRS as the ultimate stickler for detail. Double-check your math and ensure all your forms are singing the same tune to avoid delays.
#3: Automatically taking the standard deduction.
Sure, the standard deduction is quick and easy—like the drive-thru of tax filing. But is it always the best deal? Not necessarily.
If you’ve had significant medical expenses, made generous charitable contributions, or incurred other deductible expenses, itemizing might save you more money. Don’t leave potential savings on the table! Consult a tax professional to see which option works best for your situation.
#2: Putting numbers on the wrong lines.
Imagine your tax return as a jigsaw puzzle. Every piece has a place, and if something doesn’t fit, the whole picture looks wonky. Entering gross wages where adjusted gross income should go? Yikes! That could trigger a delay—or, worse, an audit.
Take your time and triple-check your work. Each box on the 1040 is a puzzle piece waiting to fit perfectly.
#1: Forgetting to check for typos.
Typos: the sneaky villains of tax season. A single misplaced number or a misspelled name can lead to big problems with the IRS. Even something as small as an incorrect Social Security number can delay your refund—or send your taxes into a bureaucratic black hole.
Before hitting “submit,” comb through your forms like a detective. Names, addresses, numbers—double-check every detail. A little extra care now saves a lot of hassle later.
These mistakes may be common, but they’re also avoidable. Take your time, review your forms, and don’t hesitate to call in reinforcements. A tax professional can be your best ally during tax season.
If you found this post helpful, share it with a friend who could use a tax tip (or five). And don’t forget to subscribe for more insights to make tax time a breeze.
Investments that Inspire, Advice that Elevates. Let’s align His money with your mission today! Stop funding the war being waged against you!