When you are preparing your taxes with ProSeries software you know it is a valuable tool for small businesses, tax preparers or perhaps for people who love filing their very own taxes.
However even the most user-friendly software will make errors. Whether you are doing it yourself or maybe you are an individual accountant helping others, you must catch these errors earlier so you can stay away from IRS issues later.
The most common mistakes users make in ProSeries and the way to fix them are explained here. These tips can save you time, anxiety and maybe spare you a penalty. Additionally, you will learn when employing an accountant might be better, especially for more complex returns.
Common ProSeries Mistakes and How to Correct Them
Below are 10 mistakes and their solution:
1. Incorrect or Missing Personal Information
The Mistake: It sounds simple, but you would be amazed at how frequently users enter the incorrect Social Security Number, misspell a name or leave key details blank. A tiny error here can result in a rejected return.
How to Fix It: Always check your personal details against official documents. In case a return is rejected, open the return in ProSeries, correct the info underneath the "Client Information" tab and resubmit.
In case you're processing returns for several clients (particularly an individual accountant), make a checklist of who submitted what data.
2. Not Including All Sources of Income
The Mistake: Many people overlook smaller income sources like freelance jobs, interest income or income from selling goods online. This might raise red flags at the IRS.
How to Fix It: In ProSeries, go to "Income" and review all sources of income. Import 1099 forms directly or enter amounts from bank statements or any other documents by hand.
Unsure what counts as income? Get an accountant. They will help ensure nothing gets overlooked.
3. Choosing The Wrong Filing Status
The Mistake: Choosing the incorrect filing status (Single vs. Head of Household) impacts your tax rate, credits, and refunds.
How to Fix It: Use the ProSeries "Filing Status Worksheet" to help determine the right status. In case you submitted your return already, you are able to submit an amended return (Form 1040-X) to fix the status.
A personal accountant can determine the right status for you based on your life situation and saving you money and time.
4. Deductions & Credits Input Errors
The Mistake: Whether you are entering mortgage interest, student loan interest, or child tax credits, input mistakes abound. A misplaced decimal can throw everything off.
How to Fix It: Error-check tools are offered by ProSeries. Run a final review to catch missing or incorrect entries using the "Final Review" tab. Verify against original forms like Form 1098 or 1099.
When in doubt, attach digital copies of your supporting forms or even consult a personal accountant.
5. Incorrect Bank Account Information for Direct Deposit
The Mistake: Simply entering the incorrect routing or account number on your tax refund may hold up the process or send your funds to the incorrect location.
How to Fix It: View payment/refund details before you e-file with ProSeries. In case the return is already filed and the bank info is wrong, call the IRS immediately.
Never guess your banking details, copy them from a check or from your bank's website.
6. Missing E-file Signatures
The Mistake: Some users don't gather electronic signatures or don't include Form 8879, authorizing e-filing. Without it, your returns are held up or rejected.
How to Fix It: Use ProSeries 'eSignature’ feature or print Form 8879 and have it signed and stored. Then re-upload or attach the form prior to e-filing.
In case helping others file, track signature collection with a deadline checklist.
7. Not Running Final Review Before Filing
The Mistake: Many users skip the "Final Review" tool thinking they've seen everything already. However the final review tool catches common errors ProSeries knows to look for.
How to Fix It: Go over each item under the "Final Review" tab. The software can notify you when forms are lacking, fields are unfinished, or are inconsistent.
Hiring an accountant, even for a review session can reveal things you didn't even realize were issues.
8. Incorrect State Tax Data
The Mistake: You can file both federal and state returns with ProSeries, but users occasionally forget to update state-specific entries. This might result in underpayment or even missed deductions.
How to Fix It: Head over to the state return tab within ProSeries and follow the prompts. Compare entries with state tax guidelines.
State tax laws vary. A personal accountant with expertise in your region will understand how to file state filings properly.
9. Using Outdated Software
The Mistake: Using an old version of ProSeries could cause compatibility problems or missed updates on tax rules.
How to Fix It: Update your ProSeries software before beginning your return. Seek updates within the software menu or enable auto-updates.
Professional accountants generally keep their tools up to date often, so lots of people employ an expert in tax season.
10. Forgetting to Save or Back Up Files
The Mistake: Some users complete a return with no saving or backing up the file. A crash or system error might take hours of work away.
How to Fix It: Use ProSeries backup to save your return on your device and also on cloud storage. Save after each change.
Professional accountants do keep safe, backed up copies of every client's return, something you should too.
Also read: How to Use ProSeries for Fast and Accurate Tax Filing
Conclusion
ProSeries is an effective tool which can make tax filing simpler, faster and more precise in case you use it properly. Mistakes occur, whether you are doing all of your own taxes or even preparing them for another person. But knowing what mistakes you should look out for and how you can fix it provides you with an advantage.
In case you are unsure, you could always hire an accountant for assistance or review. Even a part time personal accountant can help you stay away from costly errors that could cause IRS penalties or a substantial refund delay.
Bottom line? Carefully check your work and never be afraid to request assistance. When you pay attention to detail, ProSeries could be your best tax-season ally.
