Don’t let tax return errors ruin your day! Learn how to easily identify and fix errors with this step-by-step guide for correcting tax return mistakes.
Mistakes on your tax return can delay any refunds you are due and may even result in an IRS penalty. Following this step-by-step guide, you can easily identify and fix errors on your tax return to avoid these associated headaches.
Check Your Return for Error Messages or Red Flags.
After submitting your return, look for an error message or red flags that indicate something is wrong with your filing. The IRS will usually provide messages if there’s a discrepancy between the information entered on the form and what they have on file. Double-check all the data you entered to make sure it matches up with their records. If not, go back and fix any discrepancies to avoid IRS penalties for incorrect tax returns.
Possible Red Flags:
1. Unreported income 2. Inaccurate or incomplete information 3. Inconsistent information on multiple forms 4. Large deductions with little or no documentation 5. Lack of signature 6. Math errors 7. Missing forms 8. Unusually large charitable contributions 9. Failure to report foreign bank accounts or foreign income 10. Excessive business expenses
Double-Check Math Calculations and Other Errors.
Even the most experienced tax preparer can make a math error. To avoid costly issues with your return, double check any calculations or math errors that appear on your form. You should also pay attention to other common errors such as typos, incorrect Social Security numbers and addresses, and incorrect filing status.Also, be sure to crosscheck any figures that you’ve filled out against the Internal Revenue Service (IRS) website or documents they’ve sent to you in order to ensure accuracy.
Make Sure Both Sides Have Been Filed Correctly.
Once you’ve corrected any errors, be sure to double-check both the front and back of your tax return form. This includes verifying that the entries that were made on the first page are accurately reflected on the other forms or documents associated with your submission. Emails or letters from the IRS should also match up with what is stated on your tax return. Finally, make sure to check for any mistakes in math formulas, incorrectly entered figures and numbers, incorrect filing status, and typos before submitting your return.
Focus on ERR & Reject Codes on Electronic Filings.
If you filed your taxes electronically, the IRS will typically respond with a code that confirms whether or not the filing was accepted. If an error is detected on your return, you’ll be notified with what’s called a Reject Code – ERR for an electronic filing. ERR codes display after the IRS has detected an error in one or more of the fields entered on your return. It’s important to take note of this code as you won’t get any other notification that your tax return contains errors.
Some common IRS e-file Reject Codes include:
-R0000-501: Date of Birth (DOB) mismatch
-R0000-502: Filing Status (FS) mismatch
-R0000-503: Dependent Information (DI) mismatch
-R0000-504: Exemptions (EI) mismatch
-R0000-505: Earned Income Credit (EIC) mismatch
-R0000-506: Child Tax Credit (CTC) mismatch
-R0000-507: Credit for Other Dependents (ODC) mismatch
-R0000-902: Taxpayer Identification Number (TIN) mismatch
-R0000-508: Additional Child Tax Credit (ACTC) mismatch
-R0000-509: American Opportunity Credit (AOC) mismatch
-R0000-510: Health Coverage Tax Credit (HCTC) mismatch
If There’s an Issue, File an Amended Return ASAP.
If your tax return has errors, it’s important to take steps to correct them as soon as possible. The IRS suggests filing an amended return (Form 1040-X) if the issue is with a form or line that was previously filed. Filing an amended return will help you avoid delays and underpaid taxes. Make sure you review any documents, forms, and associated instructions carefully so the IRS doesn’t have to reject your return due to incorrect data or an error on the form itself.
Step-by-Step Guide for How to Fix Tax Return Errors by Steve