Top three filing errors
March 17, 2008
We used to have a David Letterman-style Top 10 Filing Errors list that didn’t change much over the years. But, taxpayers have found smarter ways to file in recent years, and we’ve had to reduce our top-ten list to a top-three list.
The main reason for our list reduction is due to electronic filing. Last year, more than 51 percent of Indiana filers filed using the fed-state program, or the state’s I-File online filing tool. In fact, 98 percent of electronically filed returns are accurate – meaning they are error free!
But we still have paper filers, and up to 20 percent of paper-filed returns are inaccurate – meaning we still get to hang on to a top-three list for a little while longer.
So, without further adieu (drum roll, please), the top three filing errors are:
3. Math errors. Even with a calculator, it’s easy to miss a step, and to add where we should have subtracted, or to transpose some numbers when writing them down.
2. Claiming more deductions and credits than one is entitled to. For example, $2,500 is the most you can claim as a renter’s deduction; anyone claiming more than that has made an error.
And, the number one filing error is:
1. Forgotten attachments!
If you forget that W-2, or a Schedule 1 to support a renter’s deduction or a homeowner’s property tax deduction, we’ll have to send a letter requesting that information. So much for a quick refund!
So how does electronic filing reduce errors? Well, here’s another top-three list:
1. Electronic filing pretty much eliminates math errors,
2. It ensures your deductions and credits are limited to the allowable amounts, and
3. It will make sure all necessary information is electronically “attached.”
If you haven’t gotten onto the electronic-filing wagon yet, and breathing easier when you file that annual return, then here’s how to get started.
If you made less than $54,000 last year, you may be eligible to file your federal taxes online for free. Check out Free File on the IRS Web site for more information. And you can file your state tax return online for free regardless of your income. Simply go to I-File after you’ve completed your federal tax return to take advantage of our free, fast and friendly online filing tool.
Reducing errors benefits all of us – tax returns filed correctly the first time cost less to process, and refunds get issued quicker. So, we hope in the next few years that error list will go away, and we’ll have nothing more to write about it.
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Welcome to Tax Talk, hosted by DiB (dye-bee), the Indiana Department of Revenue’s individual income tax guru. DiB, who says she’s been with the Department “since the earth cooled” (though it’s actually 30+ years), writes and develops Indiana’s individual income-tax instruction booklets and forms. DiB created Tax Talk to address Indiana individual income tax questions and issues during the filing season. If you would like to submit a question or topic suggestions, please send those to DiB at feedback@dor.in.gov
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