Most Common Tax Filing Mistakes to Avoid & How to Fix Them

Filing taxes can be stressful, and even small mistakes can lead to delays, penalties, or missed refunds. Whether you’re filing on your own or using tax software, it’s important to double-check your return to ensure accuracy.

Here are some of the most common tax filing mistakes and how to avoid them.

1. Incorrect Personal Information

Simple errors, like typos in your name, Social Security Number (SSN), or bank account details, can cause your return to be rejected or delay your refund.

How to Avoid It:

• Double-check that your name matches exactly as it appears on your Social Security card.
• Verify all dependents’ SSNs if you’re claiming tax credits.
• If using direct deposit, ensure your bank account and routing number are correct.

Tip: Even one incorrect digit in your SSN can cause your return to be flagged.

2. Filing Under the Wrong Status

Your filing status affects your tax bracket, deductions, and eligibility for credits. Choosing the wrong status—such as Single instead of Head of Household—can lead to overpaying taxes or IRS audits.

How to Avoid It:

• If you’re unmarried but financially supporting a child or relative, check if you qualify for Head of Household, which offers a lower tax rate.
• If you’re married, decide whether Married Filing Jointly or Married Filing Separately benefits you more.

Tip: Head of Household filers often get higher standard deductions than single filers.

3. Missing Out on Tax Deductions and Credits

Many people overpay taxes because they don’t take advantage of all eligible deductions and credits.

How to Avoid It:

Check if you qualify for:

• Earned Income Tax Credit (EITC) – For low- to moderate-income workers.
• Child Tax Credit (CTC) – For parents with dependents under 17.
• Student Loan Interest Deduction – Up to $2,500 in deductions for interest paid.
• Home Office Deduction – If you’re self-employed and use part of your home exclusively for work.

Tip: Even if you don’t itemize deductions, some credits can reduce your tax liability.

4. Not Reporting All Income

Failing to report freelance, gig work, side jobs, or investment income can result in IRS penalties. The IRS receives copies of all your 1099 forms, so they’ll know if you leave anything out.

How to Avoid It:

• Include all sources of income—even if you didn’t receive a 1099 form.
• If you’re self-employed, file Schedule C to report business income and expenses.
• If you have stocks, dividends, or crypto transactions, make sure they’re reported accurately.

Tip: The IRS uses automated matching systems, so even small omissions can trigger an audit.

5. Filing Late or Missing the Deadline

Filing your taxes late can result in hefty penalties and interest—even if you don’t owe anything.

How to Avoid It:

• Mark your calendar for April 15 (or the next business day if it falls on a weekend/holiday).
• If you can’t file on time, submit Form 4868 to request a 6-month extension.
• Make estimated tax payments if you’re self-employed to avoid penalties.

Tip: Even with an extension, you still need to pay any taxes owed by the deadline.

6. Math Errors and Incorrect Calculations

Simple miscalculations—like adding up deductions incorrectly or entering the wrong taxable income—can lead to IRS corrections or delays.

How to Avoid It:

• Use tax software or an IRS Free File program to reduce manual errors.
• If filing by paper, double-check your calculations or use an IRS calculator.

Tip: Even a small mistake in subtraction or percentage calculations can delay refunds.

7. Forgetting to Sign and Date Your Return

If you file a paper return without signing it, the IRS won’t process it, delaying your refund.

How to Avoid It:

• If filing electronically, use an IRS PIN or digital signature.
• If filing by mail, sign and date the return before sending it.

Tip: If filing jointly, both spouses must sign a Married Filing Jointly return.

8. Using the Wrong Tax Forms

Filing with the wrong form can lead to incorrect tax calculations and missed deductions.

How to Avoid It:

• Most taxpayers use Form 1040, but if you’re self-employed, you’ll need Schedule C for business income.
• If claiming education credits, include Form 8863.
• If you have capital gains from stocks or crypto, use Schedule D.

Tip: Tax software automatically selects the right forms based on your answers.

9. Not Keeping Copies of Your Tax Return

The IRS recommends keeping tax records for at least three years in case of an audit.

How to Avoid It:

• Save a digital or paper copy of your return, W-2s, 1099s, and any supporting documents.
• Keep records of deductions, receipts, and charitable donations in case of an audit.

Tip: Self-employed individuals should keep records for at least six years.

10. Ignoring IRS Notices or Letters

If the IRS sends you a letter about your return, ignoring it can lead to penalties or further action.

How to Avoid It:

• Read IRS notices carefully and respond promptly if needed.
• If you disagree with an adjustment, you can appeal or provide additional documentation.
• Consult a tax professional if you’re unsure how to respond.

Tip: Most IRS notices are about simple corrections, not audits, so don’t panic!

Avoiding common tax filing mistakes can save you time, money, and stress. Always double-check your information, take advantage of all eligible deductions, and file on time to prevent delays or penalties.

FAQs: Common Tax Filing Mistakes