PREPARING FORM 1040
COMMON MISTAKES

Taxpayers' errors fall into two broad categories. On the one hand, there are those that raise a flag at the IRS, resulting in correspondence and possible additional tax liability, interest and penalty. Then there are oversights that many escape IRS notice but may cause the taxpayer to have a greater tax liability than necessary.

Some of the more common mistakes are listed below.

• Mathematical Errors
• Failure to Sign the Return
• Failure to list occupation(s)
• Failure to list or errors in Social Security or Taxpayer ID numbers (including dependents)
• Failure to attach copy(s) of all W-2s and 1099-Rs that show withholding.
• Claiming a capital loss on the sale of your home or personal property
• Deducting child-support or alimony not required by a court.
• Deducting gambling losses in excess of winnings (if not a full-time gambler)
• Incorrect calculation of earned income credit and child tax credit
• Error in spelling of dependent's name
• Nontaxable earned income from W-2s not included on return for earned income credit determination
• Error in calculating amount owed or to be refunded

Some of the more common oversights are:

• Failure to list as a dependent an elderly parent or other relative whom you support.
• Failure to file as head of household if you are single with a dependent.
• Failure to claim the earned income credit, if eligible.
• Failure to claim excess social security withholding if you worked for more than one employer and earned in excess of the gross income limit for FICA.
• Overlooking carry-forward items from previous returns, including capital losses and passive losses.
• Overpaying taxes on sales of mutual fund shares by forgetting that you had paid taxes on previous years' distributions for capital gains and dividends.
• Taking the standard deduction when itemizing would entitle you to greater deductions.

Maxwell Shmerler & Co., CPAs
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