In the United States, tax filing can be a complicated process. Even with a tax professional or tax software guiding you, there are plenty of mistakes that can be made. Sometimes the smallest error while filing your return can end up costing big, from paying too much to being hit with an unexpected bill instead of a refund.
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There can even be financial penalties for underpaid federal, state or local taxes if the underpayment is caused by negligence, disregarding the rules, or major miscalculations. Avoiding these errors and tax liabilities starts with understanding where the mistakes commonly happen — from your W-2s to retirement savings documents — and taking the necessary steps to get things right before Tax Day (which is April 15, 2025 this year).
Here’s hoping you will receive a refund instead of a bunch of retroactive legal advice from your tax preparer, but just in case, it’s a good idea to take a look at the most frequent tax return errors according to the IRS, and how to steer clear of them when you file.
Names and Social Security numbers on tax returns have to be an exact match for official records. Just one wrong digit of a Social Security number or a typo in a name can delay processing, so it’s important to carefully check every detail against official documents before submitting.
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Employees should check the income tax their employer is withholding every year, particularly if there have been any big life changes that could have an impact on taxes, like getting married, having kids or starting a side gig.
The IRS Tax Withholding Estimator can help make sure the numbers are adding up.
Whether single, married filing jointly or head of household, choosing the wrong filing status has a direct impact on tax rates and deductions. The IRS offers an Interactive Tax Assistant to help in identifying the right status, among other things.
What might seem like a simple math error can cause larger issues at tax time, like incorrect refund amounts, underpayment notices or penalties. Checking and double-checking calculations, whether done manually or electronically, is vital.
Credits and deductions can make a big difference to final tax figures, but eligibility criteria varies and isn’t always easy to understand. Taxpayers could easily miss out on something they’re entitled to, or alternatively claim something incorrectly and have to pay it back.
