6 Most Common Pitfalls When Filing Taxes

Tax attorney reveals the six common ways people mess up their tax returns and how they can navigate the complexities of filing taxes

Key Findings:

• Federal tax attorney explains the most common mistakes people make when filing taxes and explains how to avoid these pitfalls
• Incorrect filing status, math errors, claiming ineligible credits, and forgetting to sign the return are just some of the common errors taxpayers make
• The attorney explains two additional errors people make: not applying for deductions and filing too early

Tax season is always a challenging time. Preparing a tax return is a real headache, especially with all the pitfalls you can encounter along the way and the threat of penalties hanging over your head. That’s where Ms. Dawn Delia, a federal tax attorney at Delia Law, a firm of experienced IRS tax attorneys, can help.

“I’ve helped hundreds of people correctly file their taxes, so I know the mistakes inside and out,” says Ms. Delia. “These are the six most common errors I see on people’s tax returns – and how to avoid them.”

#1 Inaccurate Personal Information 

One of the most frequent and surprisingly simple mistakes people make when filing taxes is submitting incorrect personal details. This can include entering the wrong Social Security number (SSN), misspelling names, entering the wrong date of birth, and more. 

“It’s easy to mistype a digit or letter, especially when using tax software or filling out forms manually,” says Ms. Delia. “Additionally, your name on the tax return must exactly match what’s on your Social Security card—adding or omitting a middle initial, for example, can lead to confusion.” 

Errors in your personal information can delay processing or result in the IRS rejecting your return altogether. Before submitting, double-check all identifying information for you, your spouse, and any dependents.

#2 Math Errors 

Math mistakes are still one of the most common errors on tax returns. “A misplaced decimal point or an extra zero can drastically affect your refund or result in you owing more taxes than necessary,” warns Ms. Delia. 

Using tax software can help catch some of these errors automatically, as most programs handle the math for you. However, it’s still a good idea to manually review your calculations before submitting, especially if you’re preparing your return without professional help.

#3 Incorrect Filing Status 

Choosing the wrong filing status can significantly impact your tax return by affecting your tax bracket, credits, and deductions. For instance, some individuals mistakenly file as “Single” when they qualify as “Head of Household,” which generally offers more favorable tax rates. 

Similarly, married couples often struggle with whether to file jointly or separately. Filing jointly usually results in a lower overall tax burden, but in some cases—such as when one spouse has high medical expenses or significant deductions—it may be better to file separately. If you’re uncertain about your correct filing status, the IRS offers tools like the Interactive Tax Assistant to help you choose the most appropriate option.

#4 Claiming Ineligible Credits Or Deductions 

Taxpayers often overestimate the deductions or credits they’re entitled to, leading to potential red flags on their return. For example, some deductions, like the student loan interest deduction, are income-restricted, so you cannot claim it if you earn above a certain threshold. 

Others may mistakenly claim a home office deduction without meeting the strict requirement of using the space exclusively for business purposes. Incorrectly claiming tax credits like the Earned Income Tax Credit or the Child and Dependent Care Credit can result in penalties, interest charges, or even an IRS audit. 

#5 Wrong Bank Account Information 

Direct deposit is the quickest way to receive your refund, but entering the wrong bank account number can create major delays—or, even worse, send your refund to the wrong person! “A single wrong digit can direct your refund to a different bank account, and trust me, recovering it will be a time-consuming ordeal,” Ms. Delia warns. 

If the IRS detects that the bank information provided doesn’t match what they have on file for you, they might revert to mailing a paper check, which could take weeks or months to arrive. Always double-check your bank routing and account numbers before filing, especially if you’ve recently changed banks or accounts.

#6 Forgetting To Sign The Return 

If you’re filing a paper return, forgetting to sign it is an easy but costly mistake—your return will be considered invalid, which means it won’t be processed until you correct the oversight. 

For joint filers, both spouses must sign the return. This rule applies whether you file electronically or by mail. “E-filing systems generally prompt you to give a digital signature, but it’s easy to overlook this step if you’re filing manually,” says Ms. Delia. All the correct signatures must be in place before sending your return to the IRS. If you’re filing jointly and one spouse is unavailable, you may need to use a power of attorney or other legal document to complete the process.

Dawn Delia, a federal tax attorney at Delia Law, commented:

“There are two other fairly common mistakes I see people make often on their tax returns. The first is filing the return too early. Filing before you’ve received all the necessary forms can lead to mistakes, such as omitting income reported on late-arriving 1099s. Make sure you have all your tax documents in hand before filing to avoid having to amend your return later.

“The second mistake is missing out on deductions. Many people are eligible for deductions, but they either forget to claim or aren’t certain they can, so they leave them out for safety’s sake. If you rush through the process or aren’t familiar with all the tax breaks you qualify for, you could end up paying more than you need to. Tax software or consulting with a tax professional can help ensure you’re not missing out on savings.”

Disclaimer: All information in this article has been prepared for informational purposes only and does not constitute legal advice.