Are you doing everything correctly when it comes to your taxes? It’s easy to make tax mistakes that can cost you hundreds or thousands of dollars on your tax return. The good news is many of these tax mistakes are avoidable. Let’s look at 8 common errors you’ll need to dodge this year.
Selecting the wrong filing status
One of the first steps in preparing your tax return is choosing your filing status. Taxpayers have the option of filing Single, Head of Household, Qualifying Surviving Spouse, Married Filing Separately or Married Filing Jointly. It’s important to know which one is right for you because it will determine your standard deduction amount, which credits you qualify for and your tax liability.
If you’re unmarried and taking care of a child or an aging parent, filing as head of household instead of single will entitle you to a higher standard deduction.
Although married couples can file joint or separate returns, usually it’s much more beneficial to file together. When you file separately, you’ll pay more taxes and be ineligible for popular tax breaks like the earned income credit and student loan interest deduction. ezTaxReturn can help determine your correct filing status when you do your taxes with us.
Not contributing to a 401k or traditional IRA
Everyone needs to save for their future, and one of the best places to park your cash is in a tax-advantaged account. When you contribute to your employer’s 401k or a traditional IRA, you reduce your taxable income dollar for dollar. Therefore, you’re making a huge tax mistake by not maxing out the account.
Here’s what you can contribute for 2026:
- 401k: Up to $24,500
- 401k catch-up (age 50+): An additional $8,000 ($11,250 if you’re age 60–63)
- IRA: $7,500 ($8,600 if you’re age 50 or older)
Failing to pay your estimated taxes
Not everyone is interested in working a traditional 9 to 5. Some workers prefer to freelance and be their own boss. When you work as a freelancer, taxes typically aren’t withheld from your pay, but you’re still responsible for making sure Uncle Sam gets his fair share.
If you anticipate owing more than $1,000 in taxes for the year, you must make estimated tax payments. For the 2026 tax year, they’re due April 15, June 15, September 15, and January 15, 2027. Fail to make your payments and you’ll be handing over a large chunk of your earnings at tax time.
Forgetting to review your tax withholding
You have enough bills to worry about during the year. The last thing you want is a surprise from Uncle Sam at tax time. It’s a good idea to check your withholding annually, especially if you’re newly married, recently had a baby or owed the IRS this season.
Some people aren’t happy getting a refund because they’ve essentially given Uncle Sam a tax-free loan. They’d much rather have the extra money in their paycheck during the year. In that case, they may want to have less taxes withheld from their pay. On the other hand, those who had a large tax bill can benefit from having more taxes withheld from their pay.
To adjust your withholding, you’ll need to complete and submit a new W-4 to your employer.
Missing your opportunity to get a refund
Some people don’t earn enough money to be required to file a tax return, but always prepare one anyway. There’s a possibility that you may qualify for a refundable credit which can put some cash in your pocket. The only way to claim your refund is to file.
ezTaxReturn makes the whole process easy. We guide you step-by-step through your return and help you claim every tax break you deserve.
Entering the wrong direct deposit information
Most people choose to get their refund via direct deposit because it’s faster than waiting for a check. As long as you provide the correct routing and bank account numbers, you’ll get your refund as quick as possible. But what happens if you mess up? Often, when the IRS is unable to deposit your refund, they’ll send a check to the address listed on your tax return.
However, if the money is deposited into someone else’s account, you’ll need to work with your bank to get things straightened out, which may take a while.
Paying for tax preparation when you don’t need to
Hiring a professional to do your taxes is costly and often unnecessary. Save time and money by preparing your own return using ezTaxReturn.com. Just answer simple questions and the program will complete the forms and calculations. You may even qualify for a FREE federal return.
Accumulating penalties and interest for filing late
The tax deadline for 2026 returns is April 15, 2027. Write it on your calendar, set up a reminder on your phone, do whatever it takes to remember the date, so you file on time. Missing the filing deadline is an expensive tax mistake you don’t want to make.
If you owe the IRS, here’s what late filing and late payment can cost you:
- Late filing penalty: 5% of your unpaid taxes per month
- Late payment penalty: 0.5% of your unpaid taxes per month
- Combined cap: Both penalties can climb as high as 25%
- Plus, your debt will continue to accumulate interest until your balance is paid in full
If you need more time to finish your taxes, requesting an extension will give you an extra six months to file — until October 15, 2027. But if you owe Uncle Sam, you still need to pay an amount equal to or greater than your tax obligation on or before April 15, 2027, to avoid late interest and possibly penalties.
File fast, ez and stress-free at ezTaxReturn.com.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
