Get your SC tax refund faster by avoiding these 10 mistakes
Mistakes on your tax returns can cost you time and money.
Errors can lead to delays in tax refunds. Certain mistakes can even turn a refund into an unexpected tax bill.
To help taxpayers avoid such problems, the S.C. Department of Revenue has a list of the 10 most common mistakes it has encountered when processing individual income tax returns. If you want to give your refund a better chance of arriving as quickly as possible, check to ensure you’re not making one of the mistakes listed below. The filing deadline for both federal and state returns is set for May 1, due to relief granted in October because of Hurricane Helene.
Skip paper returns
Filing tax returns online is not just faster, it’s more accurate since the software does all the math. Also, automatic checkpoints make sure the return is complete before it’s filed. According to the IRS, the error rate for paper returns is about 21%, compared to less than 1% for ones filed electronically.
Inaccurate information
Even when filing online, taxpayers are required to input a significant amount of information from official records like W-2 forms and driver’s licenses. Double-check that all your information is correct before filing.
Filing without proper forms
Some taxpayers try to file using pay stubs or without their W-2 and 1099 forms. However, those forms are needed for taxpayers to accurately report the right income.
Improper tax credit/deduction claim
It’s extremely important that you read all the requirements before filing for a tax credit or deduction. Don’t claim the Earned Income Tax Credit on your state return if you didn’t claim it on your federal return. And don’t try to claim the Two Wage Earner Credit if your filing status is not ‘married, filing jointly.’ Also, don’t claim South Carolina withholding paid to another state.
Not researching claims and deductions
Not reading all the claim and deduction requirements could also lead to you losing out on money owed to you. If you are eligible for a credit or deduction, you should take it.
Spelling and number inaccuracies
Make sure to spell your name exactly as it is printed on your social security card. Double-check to ensure you’ve entered the correct social security number too.
Incorrect bank account numbers
Pretty straightforward with this one — if you input the wrong account number, your refund can’t be sent electronically. Instead, you’ll have to wait longer for the IRS to send you a paper check.
Not updating your address
An incorrect address could lead to your return being entered into the SCDOR fraud detection process, which slows down processing. Also, if you are opting for a paper check refund, you’ll want to list your correct address.
Unsigned forms
Unsigned forms are invalid and cause processing delays. And even if you file online, you’re required to digitally sign your return. And if you file jointly, you and your spouse must sign.
Sending multiple tax return copies
Filing online is all you need to do. Sending the SCDOR paper copies as well is unnecessary and may delay processing.
IRS filing mistakes that can cost you money
According to the IRS, many common federal tax return errors are fairly simple but can potentially cost taxpayers plenty in credits and deductions. Here are some of the most common mistakes that cost taxpayers money on their federal tax returns.
- Missing or inaccurate social security numbers
- Entering wages, dividends, bank interest, and other income received inaccurately
- Taxpayers choosing the wrong filing status
- Using incorrect bank account numbers when choosing direct deposit for refunds
- Failing to sign tax returns. In most cases, both spouses must sign a joint return.
- Report all types of income to avoid a notice or bill from the IRS, including income from goods created and sold on online platforms, investment income, part-time or seasonal work, self-employment or other business activities and services provided and paid through mobile apps.
