Tax laws are complicated, often leading to several errors when filing returns. These mistakes could cost more money in the form of taxes, interest, and penalties or lead to an audit from the IRS. One must meticulously fill out and proofread their tax return forms to avoid this hassle. Here are 13 of the most common mistakes people make while filing tax returns; the articles also lists ways to avoid these mistakes.

1. Filing too early
While tax returns must never be filed late, filing them too early may not be a good idea either. Prematurely sending in one’s tax returns could lead to missing out on important tax documents, leading to mistakes in computing and processing delays. Since taxes are due by April 15 each year, it is advisable to have all documents ready and filed by the end of March.

2. Mistyping the Social Security Number (SSN)
This may seem like a no-brainer, but it is a common error across many tax returns. The Social Security Number should be mentioned as it appears on the Social Security card.

3. Making typos
Similarly, special attention must also be paid to one’s name and those of one’s dependents. Making typos here may lead to unnecessary delays and legal hassle.

4. Entering incorrect information
Information about one’s wages, dividends, bank interest, and other income received that has already been reported to the IRS must be carefully entered so it aligns with government records. In cases of disputes or complaints, one must contact the business and request a corrected form or call the IRS to initiate a Form W-2 complaint.

5. Failing to enter the information in the correct line
One must always ensure that their entries appear where they are intended to. Making errors could have legal consequences while filing returns. To avoid this issue, people often turn to tax-filing software.

6. Taking the standard deduction
Itemizing deductions may take a lot of time and effort, but opting in for standard deductions may cause one to lose out on their hard-earned money. Use tax software or hire a professional to determine which alternative is more likely beneficial.

7. Choosing the wrong filing status
Some taxpayers also choose the wrong filing status, leading to future complications. The filing status impacts one’s tax bracket, credits, deductions, and final tax owed to the government. There are five distinct categories to choose from. These are single, head of household, married filing jointly, married filing separately, and qualifying widow(er).
There are special rules governing who can file under each of these categories. Use the Interactive Tax Assistant on the IRS.gov website to determine which category to file under.

8. Making calculation errors
Over the years, the IRS has found millions of mathematical errors in tax returns. This could be related to addition, subtraction, multiplication, division, or even selecting the wrong number from tax tables.

Generally, the government mechanisms catch these errors and send a notice to let one know that their refund has been changed. Although rectification of these errors is simple, they can delay return processing. Use tax software that makes these calculations on the filer’s behalf to avoid these errors.

9. Failing to understand credits and deductions
People often make mistakes when figuring out details such as Earned Income Tax Credit, Dependent Care Credit, Child Tax Credit, and Recovery Rebate Credit. For more details, one must work with a tax professional or use the Interactive Tax Assistant on the IRS website to determine their eligibility for credits and deductions. Be sure to double-check these before the final submission.

10. Not telling the IRS how to handle the refund
Those who overpaid their taxes and are due a refund must clearly mention how they would like it to be issued. If no details are mentioned, the IRS sends a paper check via mail. To make this process quicker, mentioning one’s account information on the tax returns is advisable. These refunds may also be used towards next year’s estimated taxes or contributions to retirement accounts. More details can be found under the instructions for Form 8888.

11. Entering the wrong routing or account number
Taxpayers who want the returns deposited directly into their bank accounts must carefully enter their routing or account number.
The IRS generally works to verify routing and account numbers. If the number is invalid, a paper check is sent instead of a direct deposit. However, the return may be deposited into their account if the account number belongs to someone else. As a result, one will have to work with the bank to recover the money.

12. Forgetting state healthcare individual mandates
While the Affordable Care Act (ACA) mandate was scrapped in 2019, some states have individual health insurance mandates, which may impact filing.

13. Sending an unsigned form
Unsigned tax return forms are considered invalid. In cases of joint returns, both spouses must sign the form, except where there is a valid power of attorney. Alternatively, consider using digital signatures to file returns electronically.

Lastly, one must always save a copy of their signed returns and proof of filing. Hold on to these returns and supporting documents for three to seven years. This can help protect one from any IRS claims in the future.