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 reasons your tax return may be delayed.

Common causes

1. Missing statements. This includes all W-2s and 1099s, including those related to gambling winnings, income, interest, and mutual funds.
2. Details on basis. If you sell stock, a house, or other property, you need to provide the date you purchased the item and its cost and condition when purchased. You also need to ensure that all the costs are there. In the case of stock sales, this includes items like broker fees and surrender charges. Reinvesting dividends? Then, the cost of all those repurchases is also part of your basis in the stock!
3. 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.
4. Mismatched names. You recently married but did not change your name with the Social Security Administration.
5. Digital asset details. Similar to the necessary information when you sell other property, you must 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.
6. Missing documentation for deductions. Among these are charitable contribution statements, medical expense documents, childcare forms, property tax forms, home sales records, pension statements, and retirement forms.
7. Waiting for your review. You need to sign your tax return and/or return a signed Form 8879 stating that your return is ready to file electronically.
8. Receiving documentation late. The closer your documents are received by the April filing deadline, the greater the potential backlog of tax return processing you’ll encounter. Regarding tax return processing (and receiving a refund), the early bird gets the worm and gets it faster!

Tax return delayed?

If you’re requested to provide a missing item, the sooner you can provide the information, the better. Reviewing your return after setting it aside for a missing document or piece of information always takes a bit more time. If you have questions about your situation, please contact our RRBB advisors.