Edmars CPA

Mistakes and errors on your tax returns can happen, but most are easily avoidable when it comes to filing federal income tax returns. Taxpayers are encouraged to review their entire return before filing to make sure it is correct and complete. This is the case even if someone else prepared it, because ultimately, it’s the taxpayer’s responsibility to ensure the information on the return is accurate.

Here are just a few common errors that can be avoided:

• Filing too soon: Most tax documents should have been received by now, but taxpayers need to be sure they have all their tax reporting documents before filing. The fastest and easiest way for taxpayers to view their tax records is by logging on to their IRS Online Account.

• Incorrect filing status: Be sure to select only one filing status and make sure it is the correct one.

• Inaccurate information: Taxpayers should carefully when entering any wages, dividends, bank interest and other income they receive to make sure they report the correct amounts.

• Misspelled names or missing social security numbers: All names and taxpayer identification numbers must be provided for everyone listed on the return. Social security numbers and names should be entered exactly as they appear on each person’s Social Security card. If there have been any name changes, be sure to contact the Social Security Administration at SSA.gov or call them at 800-772-1213.

• Credits and deductions: There are several new deductions and changes to certain credits for 2026. Taxpayers should make sure any deductions and credits are calculated correctly, and necessary documentation is provided.

• Unsigned return: An unsigned return is considered invalid. If it’s a joint return, both must sign and date. However, exceptions may apply for members of the armed forces or other taxpayers who have a valid power of attorney.

• Incorrect bank account information: Taxpayers who are owed a refund should choose direct deposit. This is the fastest way for them to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax return.

Submitting tax returns electronically ensures greater accuracy. The e-file system often detects common errors and rejects a tax return, sending it back to the taxpayer for correction. This could reduce or eliminate delays in processing a federal tax return.

Taxpayers and tax professionals: Beware of these common tax scams

Scammers work hard to try to steal money and personal information during tax season and all year long. Taxpayers and tax professionals should remain alert and aware of these common scams to avoid losing money, personal information or client data.

*Social media: Fraudulent form filing and bad advice*
Social media can circulate inaccurate or misleading tax information, and the IRS has recently seen schemes that encourage people to submit false, inaccurate information in hopes of getting a refund or taking advantage of a credit, such as the Employee Retention Credit and the Fuel Tax Credit. Taxpayers should always remember that if something sounds too good to be true, it probably is.

*Bogus self-employment tax credit*
Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters market it as a way for self-employed people and gig workers to get payments of up to $32,000 for the COVID-19 pandemic period.

In reality, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave. Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision.

*Online Account help from third-party scammers*
Scammers pose as a "helpful" third party and offer to help create a taxpayer's IRS Online Account at IRS.gov, but their real goal is to steal personal information. Taxpayers should access their account directly through IRS.gov.

*Phishing and spearphishing*
Taxpayers and tax professionals should be alert to fake communications posing as legitimate organizations in the tax and financial community, including the IRS and the states. These messages arrive in the form of an unsolicited text or email to lure victims into providing valuable personal and financial information that can lead to identity theft.

Spearphishing is a tailored phishing attempt targeting a specific individual or group. Tax professionals need to be very careful about spearphishing because of the risk of a data breach. A successful spearphishing attack can ultimately steal client data and the tax preparer's identity, allowing the thief to file fraudulent returns.

*Unscrupulous tax return preparers*
Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or warning sign is when the tax preparer is unwilling to sign on the dotted line. Avoid these "ghost" preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number as required by law. Taxpayers should never sign a blank or incomplete return.

*Offer in compromise mills*
Offers in compromise are an important program to help people who can't pay to settle their federal tax debts. But "offer in compromise mills" can aggressively promote offers in compromise in misleading ways to people who clearly don't meet the qualifications, often costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

Here are the federal tax brackets for the upcoming 2025 tax season.

Main Home Sale - Did You Know?

Selling valuable assets like real estate often results in a substantial gain, subject to federal capital gains tax. However, you may be able to exclude most or all of the gain from selling your main home from your taxable income. Before you sell, find out whether you qualify for the Primary Home Sale Exclusion.