10 Common Tax Mistakes to Avoid This Tax Season
- SkyBlue Wealth Advisors
- Feb 21
- 4 min read
Tax season can be stressful, and let’s be real—nobody wants to deal with the IRS more than they have to. Whether you're filing on your own or using a tax professional, small mistakes can cost you money, delay your refund, or even trigger an audit. The good news? Most of these errors are avoidable!
Here’s a breakdown of the most common tax mistakes and how you can steer clear of them.
1. Filing Too Late (or Not Filing at All!)
Procrastination is real, but missing the tax deadline can lead to penalties and interest charges. The IRS typically requires individual tax returns to be filed by April 15 (unless it's a weekend or holiday, then the deadline shifts).
How to Avoid It:
Mark your calendar with tax deadlines.
File early to avoid last-minute stress.
If you need more time, file for an extension—but remember, an extension to file isn’t an extension to pay.
2. Entering Incorrect Personal Information
It sounds simple, but errors in your name, Social Security number, or bank details can delay your refund or even result in your return being rejected.
How to Avoid It:
Double-check all personal information before submitting your return.
Ensure names match Social Security records exactly.
3. Not Reporting All Income
The IRS receives copies of your W-2s and 1099s, so failing to report all taxable income could lead to penalties or audits. Even if you have side gigs, freelance work, or rental income, it needs to be reported.
How to Avoid It:
Review all income sources, including side hustles and investments.
Check for missing 1099 forms, especially if you're self-employed.
4. Claiming the Wrong Filing Status
Your filing status affects your tax rates and deductions. Choosing the wrong one could mean losing out on tax benefits or even triggering IRS scrutiny.
How to Avoid It:
If you're unsure, use the IRS online tool to determine your filing status.
Understand the difference between Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er).
5. Overlooking Tax Deductions and Credits
Many taxpayers miss out on valuable deductions and credits that could lower their tax bill. Commonly missed ones include:
Earned Income Tax Credit (EITC) – for low- to moderate-income earners
Child Tax Credit – for parents
Education Credits – for students and parents paying tuition
Medical Expenses – if they exceed a certain percentage of your income
How to Avoid It:
Research potential deductions and credits that apply to you.
Consider using tax software or consulting a tax professional to maximize savings.
6. Making Math Errors
A simple miscalculation can lead to delays, IRS notices, or even penalties. Manual calculations are risky, especially if you’re itemizing deductions.
How to Avoid It:
Use tax software or an online calculator to check your numbers.
Double-check all figures before submitting your return.
7. Forgetting to Sign and Date Your Return
Believe it or not, one of the most common reasons for rejected paper tax returns is a missing signature. An unsigned return is considered invalid.
How to Avoid It:
If filing a paper return, make sure you sign and date it.
If e-filing, follow all electronic signature instructions.
8. Ignoring Estimated Taxes (If You’re Self-Employed)
Freelancers, contractors, and business owners who don’t have taxes withheld from their income must pay estimated taxes quarterly. Failing to do so can result in penalties.
How to Avoid It:
Use IRS Form 1040-ES to calculate and pay estimated taxes.
Set aside a portion of your income each month to cover taxes.
9. Using the Wrong Bank Account for Direct Deposit
Want your refund fast? Opt for direct deposit. But if you enter the wrong bank details, your refund could be delayed—or worse, deposited into the wrong account.
How to Avoid It:
Triple-check your bank’s routing and account numbers before filing.
If in doubt, verify with your bank.
10. Not Keeping Tax Records
Many people discard their tax documents as soon as they file, but keeping records is crucial in case of an audit or if you need to amend your return later.
How to Avoid It:
Keep tax returns, W-2s, 1099s, and receipts for at least three years (longer if you have complex tax situations).
Use digital storage for easy access to records.
Final Thoughts
Tax season doesn’t have to be a headache—just a little preparation can save you money and stress. By avoiding these common mistakes, you can ensure a smoother filing process and even boost your refund.
If taxes still feel overwhelming, consider reaching out to schedule a meeting. As and IRA Enrolled Agent, I can help ease the burden of those pesky tax returns, as well as help pave a more clear financial future for you.
Got any tax horror stories or tips to share? Drop them in the comments below!
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through TOP Private Wealth, a registered investment advisor and separate entity from LPL Financial. TOP Private Wealth dba SkyBlue Wealth Advisors is a Registered Investment Advisor authorized to conduct advisory business in registered states
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