Tax season can be a stressful and overwhelming time for many individuals, and it’s easy to make mistakes when filing your taxes. However, even small mistakes can have big consequences, so it’s important to be aware of the most common tax filing mistakes and how to avoid them. In this blog post, we will discuss the seven most common tax filing mistakes and how to avoid them.
- Wrong Social Security Numbers
One of the most common mistakes when filing taxes is entering the wrong Social Security numbers for yourself, your spouse, or your dependents. This can delay your refund and even lead to your return being rejected. To avoid this mistake, double-check that all Social Security numbers are correct before you file your taxes. - Incorrect Name
Another common mistake is entering the incorrect name on your tax return. This can happen if your name has changed since you last filed your taxes, or if there is a typographical error. To avoid this mistake, double-check that the names on your tax return match your Social Security card and any other official documents you have. If you’ve changed your name recently, be sure the Social Security Administration has updated your record; if not, file with your previous name until the SSA catches up. - Filing Taxes Late
A common mistake is filing your taxes late. The tax deadline is usually April 15 every year. Sometimes this is delayed due to the weekend, other holidays, or occasionally disasters such as hurricanes (only delayed in affected areas) or the COVID-19 pandemic. Failing to file your tax return on time can lead to penalties and interest, which can add up quickly. To avoid this mistake, add a reminder to your calendar to file your taxes by April 12 – it’s a few days early, just in case you run into a problem with filing. - Not Filing Taxes At All
If you don’t file your taxes at all, you could be in for a host of problems. Along with failure-to-file and failure-to-pay penalties and accruing interest, the IRS can file a return on your behalf which will include all of your income and none of your deductions, often greatly exaggerating your tax liability. To avoid this mistake (and potential liens and levies resulting from it), be sure to file your taxes every year. If you can’t file by the deadline, file as soon as you can. Ignoring the problem will not make it go away. - Incorrect Filing Statuses
Filing under the wrong status is another common mistake. It’s important to choose the correct filing status based on your personal circumstances. For example, if you’re married but file as single, you could end up paying more taxes. To avoid this mistake, make sure to choose the correct filing status based on your personal circumstances. - Failing to Take Deductions
If you’re eligible for a deduction, be sure to take it. Some people think taking too many deductions will be a red flag to the IRS, but as long as they’re legitimate deductions the IRS encourages you to take them. To avoid this mistake, research the available tax deductions and see if you’re eligible to take them. Or work with a tax pro, who will be well-versed in the deductions and eligibility requirements. - Math Errors
Another common mistake is making math errors when calculating your taxes. To avoid this mistake, double-check your calculations before you file your taxes. In many cases, it’s beneficial to use a tax professional to prepare and file your taxes for you.
In conclusion, preparing and filing your taxes can be a complex and stressful process, but by being aware of the most common tax filing mistakes and how to avoid them, you can reduce
the risk of errors and ensure that your return is accepted. Remember to double-check Social Security numbers, names, filing status, signature, math errors, and EITC eligibility. With these tips in mind, you’ll be well on your way to a successful and stress-free tax season. If your return is complex, it can save you time and money to hire a tax professional to prepare your return.
