Five Possible Income Tax Filing Problem Areas

 Maybe you're just a procrastinator by nature or it's been a rough year with too many life issues getting in the way of doing your tax season homework. So now, even with three extra days this year, you haven't filed your taxes yet, and the April 18 deadline is fast approaching.

Because you're in a last minute rush, it's even more important to take the time to check and double-check your work. According to the Illinois CPA Society, you should watch these five areas for errors that could cause you problems later:  

1.  The Name Game. Of course you know your name, but does it match your Social Security Number?  Your return could bounce back, or your refund can be delayed, if they don't match. For women there can be confusion on the use of married and maiden names, or how they add or hyphenate names.  Don't forget the hyphen if you use one and also be sure names are shown correctly for dependents.

2. Corrected 1099s.  If you've already filed your return or are just about ready to, you may need to amend or restate your return should you receive a corrected 1099 restating the amount paid to you.

3. Do you know everything you need to know? Like where your money is invested? If your broker has put your money in a PTP (Publicly Traded Partnership), a K-1 form is generated. The form shows your reportable income and expense items which you need to claim on your tax return. You may not be expecting this form or may not get it in time, so check out if one is due to you; you many need to file an extension if you don't get it on time.  

Also, be sure you received all corrected 1099 forms from brokerage houses since many have issued corrections.

4. Records & Receipts.  Be ready to prove any charitable donations you're taking as deductions with records, receipts, credit card statements, and even an appraisal of a donated item.  The IRS is coming down on overvalued non-cash contributions, so describe the condition of donated items and be conservative in valuing them.

Gamblers also need to do their bookkeeping and be prepared to back up wins and losses. Most legitimate gaming facilities will issue you a form W-2G if you win $600 or more, and you must adequately document the amount of your losses if you want to claim them as a deduction.  Bottom line is, if you're claiming any type of deduction, back-up your claims.

5. Overlooked deductions.  Size up your situation to be sure you haven't missed any major deductions. You could be shortchanging yourself.  Was your salary greatly reduced in 2010?  You may now be eligible for the Earned Income Credit (EITC). You can also deduct certain costs of a job search, moving expenses for a job, and medical and dental expenses. If you have children, check out the child and dependent care credit and deductions available for students.  Get more details on deductions on the IRS site- www.irs.gov