Updated for tax years 2023 and 2024.
Are you preparing to file your federal tax return? Let’s review some common tax return mistakes filers make and how to avoid them when filing this tax season.
What happens if I make a common tax filing mistake?
Errors on your tax return can delay the processing of your return and, by extension, your tax refund. If the Internal Revenue Service (IRS) notices an error, they may reject your tax return, meaning you’ll need to fix the mistake and refile as soon as possible.
Many of the most common mistakes on tax returns are simple human errors that have little to do with complicated tax laws. Spending a little extra attention and double-checking a few things will make tax time a much smoother and error-free process.
To help you file an error-free tax return the first time, every time, here are some common errors taxpayers make when filing and why they matter.
Mistake 1: Names not matching Social Security cards
Believe it or not, names are one of the top reasons returns are rejected by the IRS. While misspellings happen, the main issue lies in dependent child names not matching the name on their Social Security cards. The IRS database syncs with the Social Security Administration (SSA). Because of this, if the IRS computer system can’t locate a name on your tax return in the SSA’s database, it will reject your tax return. Though easy to fix, your return won’t be processed until the correction is made.
Mistake 2: Entering incorrect Social Security numbers
Another common mistake is incorrect Social Security Numbers (SSN) or other identification numbers. If any of the SSNs on your tax return are incorrect, the IRS will reject your return. Several tax breaks, such as the Child Tax Credit, education credits, and Child and Dependent Car Credit, require correct SSNs. When filing, be sure to carefully check all SSNs for typos and consistency.
Mistake 3: Forgetting to include incomes
If you forget to include income on your return, the IRS will let you know. The agency knows how much income was deposited into your bank account and investment accounts based on your SSN and tax forms. Depending on when the oversight is discovered, you also could owe penalties and interest on the unreported earnings, so it’s best to verify all income has been reported before submitting your return.
Mistake 4: Not claiming tax deductions and credits
There are many tax deductions and tax credits, like the Earned Income Tax Credit, available that can reduce the amount of tax you owe and potentially boost your tax refund. Unfortunately, if you forget to claim a tax break on your return, the IRS isn’t going to tell you.
Thankfully, tax preparation software like TaxAct® can help you in this area. We walk you through every tax credit and deduction you may qualify for by asking simple interview questions during the tax filing process. This helps ensure you get every tax break you deserve.
Mistake 5: Claiming the wrong filing status
The IRS uses your tax filing status to determine many tax deduction amounts, including the standard deduction. Because of this, there are strict qualifying criteria for each filing status. Your options are:
- Single
- Head of household
- Married filing jointly
- Married filing separately
- Qualifying widow or widower
If you don’t choose the correct filing status, the IRS will reject your return. In some cases, you may qualify for more than one filing status — you’ll just want to claim the one resulting in a bigger tax refund or lower tax payment.
This is another area where tax preparation software comes in handy. If you e-file with us at TaxAct, we will guide you through your options and help you choose the filing status that’s right for you.
Mistake 6: Math errors
The most common error on tax returns year after year is bad math. Mistakes in arithmetic or in transferring figures from one schedule to another will result in an immediate correction notice from the IRS. Math errors can also reduce your tax refund or result in you owing more tax than you should.
But if you’re using tax preparation software, you don’t have to worry so much about this one — TaxAct can do all the math for you.
Mistake 7: Incorrect routing numbers or account numbers for direct deposit
If you choose to have your refund directly deposited into one or multiple accounts, always double-check that all the bank account numbers you entered are correct. Just one incorrect number can mean several extra weeks of waiting for your refund, someone else receiving your tax refund, or your refund being sent back to the IRS.
Mistake 8: Missing the April tax return deadline
The last tax return mistake is very simple to avoid. Make sure you file your tax return on time. If you need more time, you can file Form 4868 by April 15 for an automatic six-month tax filing extension. TaxAct can help you request a tax extension if you file with us.
Remember that you must still pay taxes owed by the Tax Day deadline (typically April 15) or you may owe late-filing penalties, interest, and fees. If you can’t afford to pay what you owe, the IRS offers payment plans for those who need them. TaxAct can help you set up an IRS payment plan when you file with us.
File with TaxAct to minimize errors.
Using do-it-yourself tax preparation software like TaxAct can help reduce the chance of errors, especially if you import last year’s tax return information. Our software does all the math and calculations for you, reducing the likelihood of human mistakes — just be sure to triple-check for any typos before officially submitting your return.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicableterms and conditions.
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- Check Your Tax Return Status Anytime, Anywhere
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- Cows, farming, and taxes: What you need to know.
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