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Show Avoid Common Errors on Form 1040 your exclusion (up to $100 for individual in-dividual filers, up to $200 for married mar-ried filing jointly) on line 9b; and enter the difference (subtract line 9b from 9a) on line 9c. 9. Income Compulation. This is an outgrowth of item 8. since the taxpayers tax-payers who miscompute their dividend divi-dend income will have an error on line 23. total income. Double-check Double-check these figures. 10. Income Averaging. Schedule G. Income In-come Averaging, is one of the most difficult forms for individual filers, because of the number of tax years covered. You should have copies of your returns for the preceding three years in order to accurately complete this form. Read and follow fol-low instructions carefully and double-check all figures. Each year there are some predictable trouble spots with federal income tax forms, according to the Internal Revenue Rev-enue Service. These are areas where large numbers of taxpayers make incorrect in-correct entries and thereby slow the processing of tax forms. These trouble spots fall into two broad categories: problems that recur each year, such as taxpayers selecting the incorrect figure from the tax tables; and problems that stem from changes I in the tax laws and forms from one year to the next, such as the addition of a new line to a form or the shift of an existing line to a new position on the form. Not surprisingly, the largest percentage percent-age of errors is made on Form 1040, the so-called long form. To assist filers of this form, IRS has compiled the following list of problem areas to double-check: 1. Medical Deductions. This item is not entered on Form 1040, but on a related Schedule A. Because Schedule A was redesigned last year, this item will probably be one of the leaders on the list of last year's most common errors. Due to rule changes on medical deductions, deduc-tions, IRS expects problems again this year. Be sure to check the limitation on medical expenses. 2. Figure from Tax Table. Because of the number of pages and figures involved, this item is always high on the list of most common errors for all tax forms. Double check the figure from the tax table for your filing status and enter on line 38. Check the box for Tax Table. 3. Unemployment compensation. Double-check your figures on the worksheet work-sheet in the tax instruction booklet (page 10), and make appropriate entries on lines 20a and 20b. 4. Child Care Credit. Read instructions instruc-tions carefully and double-check your computations on Form 2441, Credit for Child and Disabled Dependent De-pendent Care Expenses. Enter the figure on line 41 and attach Form 2441 to your return. 5. Balance Duel Refund. This important impor-tant item usually makes the list of most common errors. If your total tax (line 56) is larger than your total payments made (line 64), enter en-ter the difference on line 68, Amount You Owe. Follow the instructions for remitting payment. If the reverse is true, enter the difference on line 65. Overpaid. Enter on line 66, Refunded to You. the portion of the line 65 overpayment overpay-ment that you want refunded to you. 6. Earned Income Credit (EIC) Not Claimed. If you are a working parent par-ent and have at least one child living with you, and if your adjusted ad-justed gross income (line 32) is less than $11,000, you probably qualify. qual-ify. See page 16 of the instructions. 7. EIC Error or Not Qualified. Make sure you are qualified. Certain expectations ex-pectations must be met. and you must have a dependent child living with you and you must have worked during the year. Follow the instruction carefully and enter on line 59. 8. Dividends. You must complete and attach Schedule B if you have over $400 in dividend income. Enter your total dividends on line 9a |
