Common Tax Filing Mistakes to Avoid

Tax season can be stressful, and mistakes made during the filing process can lead to costly delays or even penalties. One of the most common errors is getting personal information wrong. Double-check that Social Security Numbers (SSNs) and dependent information are accurate. Even one wrong digit can delay a refund or cause issues with the filing. It's also necessary to choose the correct filing status, such as single, married, or head of household, as this can significantly impact taxes owed or refunds received. Taking extra care to review this information helps ensure a smooth filing process and minimizes the risk of costly mistakes. 

Many taxpayers miss out on valuable tax deductions and credits they may qualify for. Deductions for student loan interest, medical expenses, and certain work-related costs can reduce the overall tax burden. Charitable donations and educational expenses may also be deductible. Tax credits like the Child Tax Credit or Earned Income Credit can provide significant reductions in the amount owed. These credits are often overlooked but can make a substantial difference in the final tax bill. Keeping track of eligible deductions and credits throughout the year is key to maximizing the return when filing.

Carefully reviewing tax documents is fundamental to avoid mistakes. Ensure all necessary forms are received, such as W-2s for wages, 1099s for freelance income or interest, and 1098s for mortgage interest. Even small discrepancies between records and reported information can delay the filing or lead to incorrect returns. It's also vital to check for any missing forms related to investment income, retirement contributions, or other tax-related documents. If anything is unclear or uncertain, seeking help from a tax professional is advisable to ensure everything is in order before filing.

***THIS INFORMATION IS FOR INFORMATIONAL PURPOSES ONLY.  PLEASE BE SURE TO CONSULT YOUR TAX ADVISOR.***