Common Tax Filing Mistakes to Avoid This Season

Tax season can be quite overwhelming, and making avoidable mistakes can turn the process from merely stressful into something much worse. As we approach the deadline, it’s crucial to be aware of common pitfalls that might lead to smaller refunds, bigger bills, or even delays in processing returns.

1. Choosing the Incorrect Filing Status

Your filing status is a key part of your tax return—it determines your tax rate, standard deduction, and eligible credits. Picking the wrong status can lead to higher payments or a delayed refund if the IRS needs to review your submission.

Often, life changes throughout the year—like marriage, divorce, having a child, or helping an elderly parent—can complicate this choice. It’s, um, not always straightforward. Many taxpayers aren’t sure if they qualify as a “head of household” or “qualified surviving spouse,” which can impact their tax situation significantly.

If householders make an error here, they could lose out on larger deductions available to them, which are typically more favorable than filing singly. There are strict criteria, like contributing at least half of your household costs and having qualifying dependents. Missing these means you’d have to repay any wrongly claimed benefits, possibly with penalties.

When in doubt, the IRS offers tools to help find the right status, and many tax software programs can guide you through the choices.

2. Leaving Credits Unclaimed

One major and potentially expensive mistake is neglecting to claim all available credits and deductions. This oversight could lead to lower refunds or steeper bills.

Bill Sweeney, a senior vice president at AARP, highlighted that many people simply don’t understand the full scope of deductions or don’t take the time to explore their options. This lack of knowledge can, uh, result in missing out on money that could really help.

It’s worth noting that recent changes to the tax code mean you shouldn’t rely on last year’s filings as a guide. Sweeney emphasized the importance of reassessing your situation to ensure no benefits are overlooked this time around.

3. Missing Key Deadlines

Filing for an extension might give you more time to prepare your documents, but it doesn’t extend the deadline for payment. Typically, payments are due by April 15, 2026, even if you file for an extension.

Mike Volkender from the America First Policy Institute pointed out that even with an extension, payments still need to be submitted on time. If you can’t pay in full by the deadline, it’s best to pay as much as you can to limit penalties and interest.

4. Incorrect Bank Account Information

If you select direct deposit for your refund and enter the wrong bank details, it can lead to significant delays. A simple digit off can cause all sorts of hassle. Similarly, if you’re making payments through direct debit, incorrect information might result in declined transactions and potentially extra penalties.

5. Filing Before You Have All Documentation

It’s crucial to ensure you have all necessary paperwork—W-2s and 1099s—before submitting your tax return. Filing without this documentation could lead to errors, lost income, or the need for amendments.

Faulkder suggested that creating an account on the IRS website allows you to check what information is already submitted under your tax ID, which can help you confirm that you’ve received everything needed.

Overall, remember that filing tax returns on time and with complete documentation is important to avoid added costs, especially if you have other debts. It’s best to wait until you’ve gathered all your forms and then file promptly when you’re ready.