The information in this article is up to date for tax year 2024 (returns filed in 2025).
Filing your taxes can feel like a rollercoaster ride, and every year, millions of folks hit a few bumps that lead to delays, penalties, or even audits. Yikes! But don’t stress—we’re here to help you avoid those hiccups. In this article, we’ll dive into 10 common tax filing mistakes that can trip you up. With a little knowledge, you can navigate the tax season smoothly and keep those headaches at bay. Let’s get started! Filing accurately and on time not only saves you from unnecessary stress but also ensures you get the refund or resolution you deserve. From missed deductions to incorrect information, understanding these common pitfalls can make a big difference. By learning from past mistakes and taking steps to prepare now for 2024 taxes, you’ll set yourself up for a smoother, hassle-free experience next year.
1. Forgetting to report all income
Think your side hustle or that one-time gig won’t matter? Think again. Every penny counts when it comes to reporting income! Whether you earned money from freelancing, selling goods online, or other odd jobs, all those earnings add up and need to be reported. The IRS receives a copy of the tax forms sent to you by third parties (like your employer or platforms like PayPal). So, skipping any income can raise a red flag.
2. Wrong Social Security number
Your Social Security number (SSN) is like a key that unlocks your tax file. Entering the wrong SSN is like misplacing that key. It can cause your tax return to be rejected. Double-check any SSNs you enter for you, your spouse, and your kids on your tax forms. A tiny tax filing mistake can lead to big headaches.
3. Ignoring last year’s tax changes
Tax laws change more often than you might think. What worked last year may not work this year. Ignoring these changes can lead to missed deductions or credits. Always stay updated on the latest tax moves and make sure your tax filings reflect those changes. Here are a few tax updates to be aware of next season:
- The standard deduction has increased for tax year 2024.
- Single taxpayers and married individuals filing separately – $14,600 (up $750 from 2023).
- Married couples filing jointly – $29,200 (up $1,500 from 2023).
- Head of household – $21,900 (up $1,100 from 2023).
- The maximum Earned Income Tax Credit amount is $7,830 for qualifying taxpayers who have three or more qualifying children (up from $7,430).
- The Alternative Minimum Tax exemption amount for tax year 2024 is $85,700 (up from $81,300 in 2023).
4. Not claiming available deductions
Imagine leaving money on the table that you’re entitled to! Many taxpayers overlook deductions like the state and local taxes, gambling losses, student loan interest, and charitable donations. Don’t make this common tax filing mistake. Do your homework and use ezTaxReturn to take advantage of what’s available. We’ll guide you step-by-step through your tax return and help you get every credit and deduction you deserve. You might be surprised by how much you can save.
5. Filing without proper documentation
Filing taxes without the right documents is like baking a cake without the ingredients. Tax forms like W-2s, 1099s, and receipts should all be lined up and ready to go. If you don’t have these papers, you risk filing incorrectly. Use our tax preparation checklist to gather all necessary documentation before starting the tax filing process—it’ll save you time and worry. Not being prepared can lead to errors, delays, or even penalties from the IRS, which no one wants to deal with. If you’re wondering, do I need to file taxes, understanding your income and filing requirements is the first step. By staying organized and thoroughly reviewing the checklist, you can ensure your filing process is smooth and stress-free.
6. Missing the deadline
Procrastination is tempting, but tax deadlines are real. Missing the tax filing deadline can result in penalties and interest that pile up like snow on a winter day. The penalty for failing to file is 5% of your unpaid taxes for each month it’s late. If your tax return is more than 60 days late, the minimum penalty is $485 or 100% of your unpaid taxes, whichever is lower. The penalty for paying late starts at 0.5% of your unpaid taxes and can climb up to 25%. Mark your calendar and set reminders. Be proactive to avoid the stress of last-minute scrambles.
7. Errors in math calculations
Math isn’t everyone’s strongest subject and one small error can mess up your whole tax filing. Adding, subtracting, or miscalculating numbers can lead to incorrect tax totals. Let ezTaxReturn do the heavy lifting for you. We guarantee 100% accuracy based on your entries.
8. Using the wrong filing status
Choosing the right filing status is crucial. It affects your standard deduction, the credits you can claim and ultimately, the amount of taxes you owe. Whether you’re single, married, or head of household, make sure to claim the filing status that suits your situation. Your marital status at the end of the tax year plays a role in which one you’ll choose. Here’s how to decide which one is right for you:
- Single: You’re unmarried or legally separated from your spouse.
- Married Filing Jointly: You’re married, and both spouses agree to file a tax return together.
- Married Filing Separately: You’re married, but you and your spouse will be filing separate tax returns.
- Head of Household: You are unmarried, paid more than half the cost of keeping a home for the year, and had a qualifying child or relative living with you more than half of the year. If the relative is your parent, they don’t have to live with you, but you must claim them as a dependent and pay more than half of their household expenses.
- Qualifying Surviving Spouse: If your spouse died during the year, you could file a joint tax return. For the two years after the death, you may be able to file as Qualifying Surviving Spouse if you do not remarry and have a qualifying dependent child.
9. Rushing the process
Rushing can cause tax filing mistakes that’ll haunt you later. Take your time. Review everything thoroughly especially the bank account and routing numbers for your tax refund. Direct deposit is the fastest way to get your refund, but not if you enter the wrong bank information. If you miss a digit and your bank rejects the deposit, the IRS will usually issue a paper check to the address listed on your return. Unfortunately, not everyone is so lucky. If you enter an account number that belongs to someone else, you’ll need to work with your bank to get your money back. Tax filing isn’t a sprint; it’s more of a marathon.
10. Forgetting to sign and date
It sounds simple, but many forget this critical step when they decide to mail their tax return to the IRS. If you don’t sign and date your tax return, it’s as if you never sent it. This can lead to delays or issues in processing. Make sure your signature is the cherry on top of your finished tax return.
Note: When you e-file, you sign your tax return electronically using a Self-Select PIN.
Conclusion: Smooth sailing through tax season
Avoiding these common tax filing mistakes can make tax season far less stressful. By paying attention to detail and taking your time, you can navigate the tax maze with ease. Remember, being mindful can save you money and headaches down the road. As you prepare your taxes, keep these points in mind so you can sail through tax season without a hitch!
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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.
