Psychology experts have identified the phobia of tax returns and the IRS as a real psychological condition. According to these experts, thousands of Americans currently struggle with feeling terrified of filing their taxes because they feel it’s something more than what they can mentally handle.
As a result of this phobia, taxpayers can develop bad habits like ignoring correspondence from the IRS, failing to file returns, or even making mistakes that could’ve been avoided with a little tax help from an expert.
Are you trying to avoid making errors on your next tax return? Getting informed about some of the most common mistakes can help empower you to do your tax returns accurately and efficiently. Learn more about the top seven mistakes that could derail your tax return and how to avoid them below.
Missing the Tax Deadline
One of the mos is missing the tax deadline. “Tax season netfile” is usually defined as the months of February and April, because that’s when most taxpayers file their taxes. The tax deadline every year usually falls in mid-April.
If the tax deadline is rapidly approaching and you still haven’t filed your taxes, you’re not out of options—you can file for an extension. That’s a better option than doing nothing.
If you don’t file for an extension and don’t file your taxes in time, you’ll likely end up paying a late fee when you file.
You can avoid this common mistake by putting “Tax Day” on your calendar and dedicating a specific day to getting your taxes done. Even better, consider scheduling an appointment with a tax professional to ensure that you file your taxes before the due date. Not only will you feel more confident that you’ve met the IRS deadline, but you’ll also feel more assured that you haven’t made any mistakes!
Choosing the Wrong Filing Status
Choosing your filing status (married, single, head of household, etc.) seems straightforward, but it can get pretty confusing for taxpayers who aren’t familiar with all the terms, meanings, and implications of these filing statuses.
You’ll need to choose a status to file, so filling out this important detail is often one of the first things you’ll do. Depending on your circumstances, you’ll either be single, married filing jointly, married filing separately, a qualifying widower, or the head of household. If you’ve never been married and don’t have dependents, then you’ll file as single. If you have dependents but are not married, then you’ll file head of household.
Choosing the right filing status is crucial, so it’s advised that you reach out to a tax expert if you’re not sure which category you fit into. Filing under the wrong status could leave you liable for more taxes than you really owe, or it could result in action from the IRS, including a potential audit.