Wondering why your tax return is not finished? The delay can often come from one or two items that were overlooked and are needed to complete your tax return. Here are some of the most common:
Missing statements. This includes all W-2s and 1099s, including any related to gambling winnings, income, interest, and mutual funds.
Details on basis. If you sell stock, a house or other property, you need to provide the date you purchased the item, along with the cost and condition of the item when purchased. You also need to ensure that all the costs are included. In the case of stock sales, this includes items like broker fees and surrender charges. And if you are reinvesting dividends, the cost of all those repurchases are also part of your basis in the stock!
Dependent conflict. You claim a dependent on your tax return, but your child claimed themselves as a dependent or an ex-spouse has already filed a tax return with the same dependent’s Social Security number.
Mismatched names. You recently got married, but did not change your name with the Social Security Administration.
Digital asset details. Just like details required when you sell other property, you will need to provide the details on ALL transactions related to digital currency and other digital assets. Also remember to acknowledge whether you own any digital assets. This simple omission can hold up filing your tax return.
Missing documentation for deductions. Common among these are: charitable contribution statements, medical expense documents, childcare forms, property tax forms, home sales records, pension statements, and retirement forms.
Waiting for your review. You need to sign your tax return and/or return a signed Form 8879 saying your return is ready to file electronically.
Receiving documentation late. The closer to the April filing deadline your documents are received, the greater the potential back log of tax return processing you’ll encounter. When it comes to tax return processing (and receiving a refund), the early bird not only gets the worm, it also gets the worm faster!
If you’re requested to provide a missing item, the sooner you can provide the information the better. It always takes a bit more time to review your return after setting it aside for a missing document or piece of information.