Common Mistakes That Will Delay Your Tax Refund in 2022 > 6 Mistakes That Will Delay Your Tax Refund – After completing your tax return and learning that you will get a refund, you may begin to consider how you will spend or save it. Not so quickly! You may have to wait for your refund if you make a mistake on your 1040.
“If your return is correct from the start, your chances of receiving a prompt refund increase dramatically. Similarly, the odds of receiving a letter from the IRS decrease dramatically — which is usually excellent news,” says IRS spokesman Eric Smith.
Experts spoke with us about frequent blunders that may cause delays in the preparation of your tax return and receiving your refund. To obtain your refund quicker, avoid these six mistakes.
1. Filing A Paper Return
To get a timely refund, the IRS emphasizes the significance of filing online rather than by mail. According to the IRS, most taxpayers who complete a tax return with no difficulties should get a refund within 21 days if they e-file and choose direct deposit. The IRS warns that completing a paper return would result in a “extended refund delay” because to the pandemic’s huge obstacles.
Taxpayers should utilize software, a trusted tax expert, or IRS Free File on IRS.gov, according to the IRS. “Even in a regular year,” Smith notes, “electronic filing is usually a smart idea.” “With the epidemic, it’s an excellent idea, and it’s your greatest chance of receiving a prompt return.”
Over 90% of Americans submit their tax returns online. Others use pen and paper to finish their returns and send them. Others use software to create their returns, then print them to mail to the IRS. According to the IRS, more than 40% of taxpayers who submitted a paper return in 2019 utilized software before printing it. Smith says, “Don’t press print, click send,” citing the cost savings in paper, postage, and time.
You also want your refund to be sent to you by direct deposit. “The IRS prefers to direct deposit refunds rather than send a paper check since it’s more secure, quicker, and less expensive for them,” explains Pamela Rodriguez Reiffert, a CPA in San Antonio.
2. Forgetting to Sign Your Return
“Sending an unsigned paper return is the same as not sending one at all.” “At that moment, it’s no longer legitimate,” Smith explains. “We’ll have to return it to you for signing.” After that, you must return it to us. As a result, it becomes part of our backlog of papers.”
Another incentive to file electronically is that tax software includes built-in prompts that won’t allow you e-file without an electronic signature. Raven Deerwater, an enrolled agent in Mendocino, Calif., says, “It’s pretty much infallible.” Enrolled agents prepare tax returns and represent taxpayers in front of the Internal Revenue Service.
The IRS will reject your return if you miss anything vital when filing online, although it can typically be rectified quicker. “No one loves to be rejected, but in this situation, rejection is beneficial since it allows you to make a speedy remedy. When that occurs with a paper return, it might take weeks, if not months, to resolve,” Smith adds.
3. Incorrectly Reporting The Child Tax Credit and Stimulus Payments
Make sure you submit the right amounts on your tax return if you got a third stimulus Economic Impact Payment or the advance Child Tax Credit. “Incorrect inputs when reporting these payments mean the IRS will have to analyze the tax return again, causing a significant delay,” the IRS notes in a statement.
The Internal Revenue Service is sending out special letters to recipients of stimulus money and advance Child Tax Credit payments. You may also check your payments using your IRS.gov online account.
According to Deerwater, stimulus payments might be particularly difficult since the monies may have arrived through direct deposit, cheque, or gift card, and it’s conceivable you didn’t get yours. Some consumers mistook gift cards for junk mail and tossed them trash.
“It might be an IRS error, a mistake you made, or there could be no error at all, and all you have to do now is wait and go through the reconciliation process if it doesn’t match,” Deerwater adds.
If you got the Child Tax Credit in 2021, you must complete and attach Schedule 8812, “Credits for Qualifying Children and Other Dependents,” to your tax return. This is essential whether you’re applying for the credit, returning advance payments because you didn’t qualify for it, or claiming full or partial repayment protection depending on your family’s income. “This isn’t like previous years,” Smith adds. “Despite the fact that this schedule has been around for a long time, not everyone has had to fill it out in the past.” Schedule 8812 will cause a delay in your reimbursement.”
Married couples should be aware that they will each get a Letter 6419 detailing their share of any advance Child Tax Credit payments made in 2021. If the couple is filing jointly, they must add the two amounts and submit them on Schedule 8812. If you don’t, your refund may be delayed.
4. Not Waiting For All Your 1099s Or W-2s To Arrive
Perhaps you’ve already filed your tax return and then get a 1099 for an account you forgot about. Perhaps you work numerous jobs and get a W-2 after you’ve filed your tax return. The issue is that the IRS already has all of your 1099s and W-2s on file. As a result, if you don’t include all of your 1099s and W-2s on your return, your income will be lower than the IRS has on file.
An IRS CP2000 will be issued as a result of this. A notice will arrive in the mail informing you that the income you declared on your tax return does not match the income the IRS has on file. Based on the agency’s files, the notification will suggest adjustments to your return and ask you to pay more taxes or the agency will reduce your refund. You’ll need to fill out and sign a response form indicating whether you agree or disagree with the IRS’s adjustments, in which case you’ll need to supply documents to back up your claim.
Another issue might be that you have all of your 1099s and W-2s, but one is inaccurate. To guarantee that your 1099s, W-2s, and other year-end statements are error-free, double-check them as soon as they come. “Overall, companies, banks, and other payers do an excellent job of getting things out swiftly and precisely, but they’re human, too, and make errors from time to time.” “If a statement is incorrect, contact them as soon as possible and request a revised copy,” Smith advises.
5. Claiming Dependents Incorrectly
Make sure your children aren’t claiming themselves on any returns they submit if you’re claiming them as dependents. “If this occurs, your reimbursement may be delayed,” adds Rodriguez Reiffert. The parent or kid must then fix the error, she explains. According to Deerwater, divorced spouses must make sure that just one parent is listing any children as dependents.
Also, make sure each dependent’s Social Security number is valid. “If you’re submitting on paper, it won’t be instantly rejected,” adds Rodriguez Reiffert. “If you e-file, you will very certainly be unable to e-file your tax return if you make a mistake with your Social Security number or transpose digits.”
This tax season, accuracy with dependents is particularly critical. “This year, more than ever, you want to be able to claim all of the family-oriented benefits that are available,” Smith adds.
6. Sending Your Return To The Wrong IRS Processing Center
The IRS will have to transmit your return to the appropriate processing center, which will delay the start of the agency’s work on your file. “At that location, you go in the rear of the queue,” Deerwater explains. “Wait times are already greater than usual, and now you’re going to double them because you made a mistake.”