IRS provides new tips for tax filers to avoid common errors

IRS provides new tips for tax filers to avoid common errors


With state individual income tax returns due in less than a month, the Michigan Department of Treasury reminds taxpayers “there is still plenty of time left to file.”

Both federal and state tax returns must be filed electronically or postmarked through the United States Postal Service by 11:59 p.m. on April 18, according to the treasury in a Monday press release.

“Consider e-filing to ensure an accurate return and timely refund,” Deputy State Treasurer Glenn White, who oversees the treasury’s Revenue Services program, said in the Monday release. Last year, more than 4.8 million Michigan taxpayers e-filed, which is 89% of state income tax filers.

Printed tax forms are available at public libraries, post offices in northern Michigan and the Upper Peninsula, state health department county offices and treasury field offices.

Michigan taxpayers with questions about their tax returns or refunds can use the Treasury eServices portal to find answers. The portal lets taxpayers ask state income tax-related questions and keeps them from waiting for a customer service representative to answer the call. Taxpayers typically get answers to questions within 24 to 48 hours. Real-time tax refund status information is available 24/7.

The Treasury eServices portal also lets taxpayers change addresses, view estimated tax payments, calculate penalties and interest and view and respond to letters.

People with low income, disabilities or who are 60 years of age or older may qualify for free tax preparation help from volunteers certified with the Internal Revenue Service. For information about free tax help, visit irs.treasury.gov/freetaxprep or dial 211.

The IRS also provided Monday some important advice for taxpayers who want to avoid common errors and get their refunds as quickly as possible.

Gather all tax documents

Taxpayers should gather all documents, such as forms W-2 and 1099, and any documents to support tax deductions or credits like education credits or mortgage interest payments. Taxpayers should also have their prior-year tax return available; they may need it.

File electronically

The IRS encouraged taxpayers and their tax professionals to file their tax returns electronically through IRS Free File or other e-file service providers. Electronic filing helps reduce math errors and identifies potential tax credits or deductions the taxpayer may be eligible to claim. It is also important for taxpayers to review their returns for accuracy. Filing electronically and choosing direct deposit is the fastest and most secure way to receive a refund.

Use the correct filing status

Tax software, including IRS Free File, also helps prevent mistakes when selecting a tax return filing status. If taxpayers are unsure about their filing status, the Interactive Tax Assistant on IRS.gov can help them choose the correct status, especially if more than one filing status applies.

Double-check name, birth date and Social Security

Taxpayers must correctly list the name, date of birth and Social Security number of each person they claim as a dependent on their individual income tax return. Enter each SSN and individual’s name on a tax return exactly as printed on the Social Security card.

If a dependent or spouse does not have an SSN and is not eligible to get one, list the Individual Tax Identification Number instead.

Answer the digital assets question

Forms 1040 and 1040-SR for the tax year 2022 ask whether, at any time during 2022, the taxpayer received (as a reward, award or payment for property or services), sold, exchanged, gifted or otherwise disposed of a digital asset (or financial interest in any digital asset). Taxpayers should not leave this field blank but should check either “Yes” or “No.”

Report all taxable income

Remember, most income is taxable. Under-reporting income may lead to penalties and interest. This includes unemployment income, interest received and income from the gig economy, service industry and digital assets. Taxpayers can read Publication 525PDF for more information.

Double-check routing and account numbers

Taxpayers can request direct deposit of a federal refund into one, two or three accounts. Make sure the financial institution routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account. The refund can also be used to purchase savings bonds.

Mail paper returns to the right address

For those who need to file a paper tax return, they should confirm the correct address of where to file on IRS.gov or on Form 1040 instructions to avoid processing delays.

Sign and date the return

If filing a joint return, both spouses must sign and date the return. When taxpayers are self-preparing their taxes and filing electronically, they must sign and validate their electronic tax return by entering their prior year’s adjusted gross income. Taxpayers can review Validating Your Electronically Filed Tax Return if they have questions.

Keep a copy of the tax return

When ready to file, taxpayers should make a copy of their signed return and any schedules for their records. Copies help them prepare future tax returns and make math computations if they need to file an amended return.

Request an extension, if needed

Taxpayers who need more time to file can request a six-month filing extension to Oct. 16 and prevent late filing penalties. Use IRS Free File or Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return by April 18.

Taxpayers can also request an extension by paying all or part of their estimated income tax due and indicating that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System, a debit or credit card or a digital wallet. This way taxpayers don’t have to file a separate extension form and will receive a confirmation number for their records.



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