File Schedule M, or not, and other tax-filing mistakes not to make

We're heading into tax crunch time and some filers are starting to freak out. Please don't.

Getting in hurry will cause you to make mistakes, like forgetting to file a Schedule M to claim the Making Work Pay credit.

 
Yep, in addition to having issues with filling out this form, some taxpayers are just ignoring it altogether. Again, please don't.

You need to file this new piece of tax paperwork to ensure you get credit for adjusted withholding taken out of your pay last year. The Making Work Pay credit is worth up to $400 for singles and $800 for couples who make less than $75,000 and $150,000, respectively.

Since this new tax break and filing requirements are causing problems for many taxpayers, IRS computers have been calculating the credits for folks who didn't submit Schedule M. I've heard from some readers who benefited from this extra care by the IRS.

But such added processing means that the processing of their, and other, returns gets delayed. And that means potentially slower delivery of refunds.

The Schedule M issue is just one of the 10 tax mistakes you should avoid this filing season. The full list is:

1. Claiming the Making Work Pay credit 
2. New form for nonitemziers
3. Homebuyer tax credit complications  
4. Direct deposit dangers
5. Overlooking unearned income 
6. Math miscalculations 
7. Social Security number oversights 
8. Complete charitable contributions 
9. Signature required 
10. Missing the deadline

Sure, some of these sound like no-brainers. But when it comes to taxes, too often too many of us seem to lose a lot of our normal mental faculties.

So check out the details on each of these mistakesin my story at Bankrate and make sure you don't make any of them!

Related posts:

• Are you ready to file your taxes?
• Tax breaks without itemizing
• 7 new tax laws that could save you money
• Don't overlook these tax breaks
• Don't forget your Daily Tax Tip!
• Did you get a recovery payment?
• Schedule M, yet another new form
• Making Work Pay tax problems ... again
• Don't spend money to save tax dollars

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Comments

[Barb]

I got a letter in the mail about the schedule m from the IRS. Then I got another letter saying that we qualified for the extra child care credit and the earned income credit, (however they are wrong) I refused to send in the extra schedules, because when they catch the error, I will owe interest. No Way!