Filing your tax return can feel overwhelming, but with a little preparation and attention to detail, you can avoid the common mistakes that trip up many taxpayers each year. Taking the time to review your return and double-checking your entries can save you from processing delays, missed deductions, or even costly penalties. Here’s a guide to the most common tax filing mistakes and how to avoid them.
Missing the Tax Filing Deadline
The Mistake: Forgetting to file by the deadline (April 15 in most years).
How to Avoid It: Mark your calendar or set reminders for important filing deadlines. If you can’t file on time, request an extension by submitting Form 4868, but remember that an extension to file is not an extension to pay any taxes owed.
Entering Incorrect Personal Information
The Mistake: Simple errors like misspelled names, incorrect Social Security numbers (SSNs), or wrong bank account details for direct deposit.
How to Avoid It: Review all personal information carefully before submitting your return. Make sure names and SSNs match what’s on your Social Security card, and double-check your bank routing and account numbers for direct deposit refunds.
Filing Under the Wrong Status
The Mistake: Selecting the incorrect filing status (e.g., Single, Married Filing Jointly, Head of Household).
How to Avoid It: Use the IRS Interactive Tax Assistant to determine the correct filing status. Choosing the right status can significantly impact your deductions and credits.
Overlooking Taxable Income
The Mistake: Forgetting to report all sources of income, such as gig work, side hustles, or investment earnings.
How to Avoid It: Gather all your income forms, such as W-2s, 1099s, and other income statements. If you received income but didn’t get a 1099, it’s still your responsibility to report it.
Failing to Claim All Eligible Credits and Deductions
The Mistake: Missing out on valuable tax breaks like the Earned Income Tax Credit (EITC), Child Tax Credit, or education credits.
How to Avoid It: Research the credits and deductions you may qualify for. IRS tools like the EITC Assistant can help. Consider consulting a tax professional or using tax software that guides you through available tax benefits.
Math Errors or Typos
The Mistake: Miscalculations in your return, such as adding or subtracting incorrectly, can lead to delays or IRS notices.
How to Avoid It: Use tax preparation software or work with a tax professional to minimize math mistakes. If filing manually, double-check all calculations and ensure your numbers are accurate.
Forgetting to Sign and Date Your Return
The Mistake: Neglecting to sign and date your return is a frequent reason for IRS rejection.
How to Avoid It: Always sign your return. If filing jointly, both spouses must sign. For electronic filing, don’t forget to use your PIN or IRS-issued Identity Protection PIN (if applicable).
Not Keeping a Copy of Your Return
The Mistake: Failing to keep records of your tax return and supporting documents for future reference.
How to Avoid It: Save a copy of your return and any relevant forms (e.g., W-2s, 1099s, receipts for deductions) for at least three years.
Ignoring State Taxes
The Mistake: Focusing only on your federal tax return and forgetting about state filing obligations.
How to Avoid It: Check if your state requires a tax return and ensure you file both federal and state taxes on time. Some states have different deadlines, so stay informed.
Not E-Filing or Choosing Direct Deposit
The Mistake: Filing paper returns, which can lead to longer processing times and delayed refunds.
How to Avoid It: File electronically to ensure faster processing and fewer errors. Opt for direct deposit to get your refund faster and more securely.
Final Thoughts
Filing your taxes doesn’t have to be stressful. By avoiding these common mistakes, you can ensure your return is accurate and processed quickly. Whether you’re filing on your own or with a professional, take the time to review your return thoroughly before submitting it to the IRS.
Have you experienced any mistakes on your tax return in previous years? Let us know in the comments below what you had to do to correct it!
