2025 Tax Filing Tips: Avoid These 5 Costly Mistakes That Could Cost You Thousands

Lucy Lazarony is a seasoned personal finance writer who began her career in 1998, specializing in clear, practical advice on credit, debt, budgeting, retirement, and savings.

Even simple oversights on your federal tax return can lead to expensive consequences. While it may seem obvious to sign your form or double-check your math, taking the time to carefully review your return can save you thousands.

Here are five frequent tax errors to avoid that can impact your wallet and peace of mind.

Key Insights

• Choosing the wrong filing status can increase your tax liability.
• Incorrect income or Social Security numbers can delay your refund.
• Filing before receiving all tax documents may cause you to miss deductions.

1. Selecting the Wrong Filing Status

Picking an incorrect filing status can cost you significantly. For example, filing as Head of Household offers better tax brackets and a higher standard deduction compared to filing as Single.

Joanne Burke, CPA and founder of Birch Street Financial Advisors, explains, "Choosing the wrong status might cause you to miss out on valuable credits like the Earned Income Tax Credit or Child and Dependent Care Credit, which can reduce your tax bill substantially."

Take the time to carefully evaluate your filing status to maximize your tax benefits.

2. Entering Personal Information Incorrectly

Errors in reporting income, Social Security numbers, or other details can lead to processing delays and confusion.

Burke notes, "Mistakes can cause the IRS to take longer reviewing your return or even reject your e-filed submission outright. Paper returns with errors may trigger IRS notices, further delaying your refund."

Incorrect data can also result in paying too much or too little tax, potentially incurring penalties or requiring amended returns.

Always double-check all personal and financial information before submitting your return.

3. Filing Your Return Too Early

Submitting your tax return before receiving all necessary documents can cause you to miss important deductions or credits.

Alison Flores, manager at The Tax Institute at H&R Block, advises, "Wait until you have all forms, including those for child care expenses, student loan interest, and premium tax credits, to ensure you claim every benefit available."

Patience can help you avoid leaving money on the table.

4. Making Mathematical Errors

Math errors are a common cause of IRS audits and can lead to incorrect tax amounts owed.

Flores recommends, "Use reliable tax software to handle calculations and double-check all figures to reduce mistakes."

Accurate math ensures your return is processed smoothly and minimizes audit risks.

5. Forgetting to Sign Your Tax Return

Forgetting to sign your return, especially joint returns requiring both signatures, can delay processing.

Filing electronically with a digital signature can help prevent this oversight.

Flores emphasizes, "Always ensure your return is signed and dated before submission."

What to Do If You Made a Mistake

If you discover an error after filing, submit an amended return promptly. Generally, you have up to three years from the original filing date or two years from tax payment to file amendments.

Flores advises, "File amendments quickly if you owe additional tax to reduce penalties. Wait to amend until the IRS accepts your original return or you receive your refund."

Final Thoughts

Common tax mistakes can cause refund delays, missed credits, or higher tax bills. To avoid these costly errors, carefully verify your filing status, personal information, math calculations, and signature. Utilizing trusted tax software can enhance accuracy and ease the filing process. By being thorough and patient, you can file an error-free return and keep more of your hard-earned money.

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