How to Avoid Common Tax Filing Mistakes

Taxes are never fun, whether you’re a seasoned taxpayer or filing for the first time. But don’t worry—filing your taxes accurately is manageable if you take the right steps. By avoiding some common errors, you can save yourself from unnecessary stress, late fees, and that dreaded IRS audit. Here are 10 common tax filing mistakes and how you can steer clear of them.

1. Filing Your Taxes Too Early

• MISTAKE: While being proactive about filing your taxes might seem like a good idea, filing too early could mean missing important forms like a W-2 or 1099. If you file an incomplete return, you might be required to make amendments later, which leads to processing delays.
• HOW TO AVOID: Wait until all your forms Employers and financial institutions have until January 31 to send them out.

2. Forgetting to Sign and Date Your Tax Return

• MISTAKE: Simply put, unsigned tax returns are invalid. This mistake is most common for individuals who file their taxes by paper, and it can result in delayed processing or a rejected tax return.
• HOW TO AVOID: There are more places to sign and date your tax return than you might expect! Be sure to review the entire document before submitting. If you are filing online, remember to use your PIN or the IRS-provided electronic signature option.

3. Math Errors

• MISTAKE: It may seem small, but simple math errors are one of the top reasons tax returns get flagged. Even a minor calculation mistake can lead to discrepancies, delays, or even an audit.
• HOW TO AVOID: Use tax software or hire a tax professional to do the calculations for you. Or, double-check your numbers before submitting your tax return.

4. Missing Out on Tax Credits and Deductions

• MISTAKE: Every year, millions of people miss out on the tax credits and deductions they are entitled to. Don’t leave your money on the table!
• HOW TO AVOID: Research the commonly overlooked credits and deductions relevant to your situation, and consult a professional if you need a second set of eyes to maximize your refund.

5. Mismatched Income Information

• MISTAKE: If your income doesn’t match IRS records (say, from an unreported freelance gig), it will raise a red flag. The IRS gets copies of all your W-2s and 1099s, meaning they already have your income details and can easily spot mistakes.
• HOW TO AVOID: Cross-check all income sources and ensure everything is reported accurately. Compare your income with the IRS notices or forms you have received.

6. Incorrect Personal Information

• MISTAKE: One typo can make your return invalid. For example, an incorrect Social Security Number (SSN) or bank account number can mean delayed refunds—or no refund at all.
• HOW TO AVOID: Double-check all personal details, including your SSN, address, and bank account info. To view your full Academy Bank account number, log in to your digital banking account. From your personal home page, select your account and click the details tab to access your full account number.

7. Failing to File Taxes Jointly or Correctly as a Married Couple

• MISTAKE: If you got married during the tax year, congratulations! But you cannot file as “Single” anymore. For married couples, filing together often provides greater tax benefits—but not always. Depending on the situation could end up costing you more money.
• HOW TO AVOID: Analyze whether filing jointly or separately saves you more money. “Married Filing Separately” can reduce liability in certain cases. You can use an online filing calculator or speak to a tax advisor for guidance.

8. Forgetting to File Taxes for Someone Who Died

• MISTAKE: This might sound shocking, but yes, taxes must be filed for someone who has passed away during the tax year. It’s easy to misstep if you are unfamiliar with the process.
• HOW TO AVOID: If you are the executor or personal representative for someone who has passed away, remember to file their final tax return (Form 1040) just like you would for a living taxpayer, but be sure to write “Deceased” after their name. If the deceased person had income from investments, property, or other sources after their death, you may also need to file a separate tax return for the estate (Form 1041, U.S. Income Tax Return for Estates and Trusts).

9. Not Retaining Tax Records

• MISTAKE: No, you should not throw away that tax receipt from 6 months ago! Failing to keep records of tax forms, records, or previous tax returns can get you into hot water if the IRS audits you.
• HOW TO AVOID: Keep records like W-2s, 1099s, deductible expense receipts, and prior returns for at least 3 years. Store them in a safe, organized place, either digitally or physically, so you can easily access them if needed. This will help ensure you have the paperwork ready if the IRS requests it OR if you need to amend a return later.

10. Missing Tax Deadlines

• MISTAKE: Mark your calendar, folks. Late filing can lead to penalties, interest, or both.
• HOW TO AVOID: Stay aware of the key tax dates, and set reminders or use a digital calendar to stay on track. Every year, the Tax Day is April 15^th and the extension deadline is October 15^th. HOWEVER, if either of those dates falls on a Saturday, Sunday, or a Federal Holiday, the due date is delayed until the next business day.

Smooth Sailing Through Tax Season

We get it—no one enjoys filing taxes. But it doesn’t have to be a nightmare if you avoid these common mistakes. Double-check your details, take time to confirm your information, and don’t be afraid to use tools or ask professionals for extra help.

Academy Bank is here to help you navigate tax season. Our financial calculators simplify the planning process. Use tools like our Mortgage and Tax Calculator, Marginal Tax Calculator, 1040 Tax Calculator, 1040EZ Tax Calculator, Traditional IRA Calculator, and Roth IRA Conversion Tax Calculator to make tax season easier.

Need your bank account information for tax season? If you are expecting a tax refund through direct deposit, you will need your account and routing numbers.  The Academy Bank routing number is 107001481, which you can also find on our homepage under the phone icon in the top bar. To locate your account number, simply log into online banking, select your account, and click the "Details" tab to view the full number.

With a little preparation, your tax season will be a breeze!

MORE TAX RESOURCES:
How to Maximize My Savings Before Tax Season
How to Keep Your Information Safe During for Tax Season
How to Build Credit with Your Tax Refund
How to Use Your Tax Refund
How to Calculate Marginal Tax Rate
How to Calculate Mortgage Tax Deduction
How to Calculate Tax on 1040
How to Calculate Taxable Interest on 1040ez
How to Calculate Tax for Roth IRA Conversion

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