Do-it-Yourself (DIY) tax preparation is gaining popularity among filers throughout the world.
The explosion of software providers on the scene are making it more accessible for individuals who have traditionally worked with a tax preparer in the past.
However, with the increase in the DIY options there is also an increase in the number of returns that the Internal Revenue Service (IRS) rejects for errors.
Here are three mistakes individuals should avoid when completing an income tax return.
 

1. Dependents.
   One of the most highly used forms of reducing income taxes involves the number of dependents that people claim.
   For most filers the more dependents they claim the less taxes they will owe.
   However, there are some exceptions to the dependency rule that filers should be aware of.
   For example, there are cases where adding certain types of dependents does not necessarily qualify for a tax deduction.
   A child in college who claims themself on their tax return disqualifies their parent to do the same.
   This error has been the cause of rejection for many tax returns and the result of lower refunds for filers.
   Alternatively, overlooking dependents such as parents, siblings, and other relatives is a deduction that people often miss.
   Discuss the details with a tax professional if you are not sure who you can claim as a dependent on your tax return.
   
2. Claiming the wrong filing status.
   The IRS uses five major categories to identify people who file income tax returns.
   The categories include Single, Married filing joint, Married filing separate, Head of household, and Qualifying widow(er) with a dependent child.
   Most of the error in selecting a filing status is found on the returns of people who are separated but not divorced or Single but not Head of Household.
   Since the different filing status options are taxed a different rates a mistake here can prove significant in the amount of tax that a filer will have to pay.
   
3. Misinterpreting tax law.
   With the growing numbers of tax preparation options on the market many people are looking to save money by becoming their own tax preparer.
   When you have a simple tax return this is a viable option for you.
   However, since tax rules change all the time they can be difficult to interpret, even for seasoned tax pros.
   The more complex tax scenarios are the greater the need becomes to understand the rules surrounding them.
   If you are facing a complex tax return don't chance it.
   It is better to invest in good advice from a tax professional than to end up paying for tax mistakes later.
   

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