When using tax calculators, many taxpayers make mistakes and enter the incorrect numbers or make mistakes when calculating credits and deductions, as Bankrate claims. Self-employed taxpayers and some others may need to use different tax calculators to calculate tax liability, as the IRS reports.Continue Reading
Many taxpayers enter the wrong information into tax calculators or calculate the credits and deductions applying to their tax return incorrectly, as Bankrate reports. Taxpayers should carefully enter information and avoid mistakes when determining eligibility for credits and deductions by reviewing the information provided on IRS forms carefully. Calculators do help reduce mathematical errors when preparing taxes and provide an advantage whether filing a paper or online return. Some calculators assist with determining credit eligibility, and taxpayers should carefully review the information they provide and the results to prevent inaccurate answers on the tax return. Some taxpayers also may need special calculators to estimate their tax liability if unique circumstances such as self-employment apply, as the IRS reports.
There are numerous ways taxpayers may provide inaccurate answers on their returns and the IRS is usually aware when mistakes happen, as Bankrate claims. The IRS receives copies of W-2 documents and other forms for each filer and compares taxpayer answers with records the agency has on file. Self-employed taxpayers and some others may need to use different tax calculators to calculate tax liability, as the IRS reports.Learn more about Taxes