Avoid these 10 mistakes if you want your SC tax refund as soon as possible
When it comes to your tax returns, mistakes can cost you time and money.
Errors can lead to delays in tax refunds. Even worse, certain mistakes can turn a refund into an unexpected tax bill.
To help residents avoid such problems, the S.C. Department of Revenue has compiled 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. Tax returns are due April 15.
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 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 straight forward 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.
