Common tax return mistakes that can cost taxpayers

Common Tax Return Mistakes

Filing taxes can be stressful. Many people make mistakes that cost them money. Knowing what to avoid can save you time and money.

Incorrect Personal Information

One common mistake is entering incorrect personal information. Make sure your Social Security Number and other details are correct. Errors here can delay your refund.

Wrong Filing Status

Choosing the wrong filing status is another frequent error. Your status affects your tax bracket and deductions. If you're unsure, consult a tax professional.

Math Errors

Math errors are easy to make but can cause big problems. Double-check your calculations. Use tax software to minimize mistakes. Consult a tax professional.

Overlooked Deductions and Credits

Many people miss out on deductions and credits. These can significantly reduce your tax bill. Research or ask a professional about available options.

Unreported Income

Forgetting to report all income is a serious mistake. This includes freelance work and side gigs. The IRS receives copies of your income forms, so they will notice discrepancies.

Missing the Deadline

Missing the tax filing deadline can result in penalties. Mark the date on your calendar. If you need more time, file for an extension.

Inaccurate Bank Information

Providing the wrong bank information can delay your refund. Double-check your account and routing numbers. Ensure they are accurate to avoid issues.

Not Keeping Records

Keeping accurate records is essential. Save receipts and documents for at least three years. This will help if you are audited.

By avoiding these common mistakes, you can ensure a smoother tax filing process. If you have questions, seek help from a tax professional.