Common tax return errors: 6 mistakes and how to prevent them

USA Today

14-03-2025

Common tax return errors: 6 mistakes and how to prevent them
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Thousands of IRS employees laid off as tax refund season gets underway
Thousands of IRS employees were laid off, primarily affecting President Biden's expansion hires aimed at tax enforcement on wealthy taxpayers.
Taxpayers often make mistakes when filing their taxes, such as inputting incorrect personal information or making math errors.
Choosing the wrong filing status or claiming ineligible credits can lead to complications with the IRS.
Incorrect bank account information can cause delays in receiving refunds, and forgetting to sign the return can render it invalid.
Regardless of the method used for filing, taxpayers should thoroughly review their returns for any errors before submission.
In baseball, errors are part of the official statistics. Both basketball and football track turnovers because they are often a key factor in determining who winds up with a "W" at the end of the game. With a tip of the Tax Talk cap to Dawn Delia, federal tax attorney at Delia Law, today's column will summarize a half-dozen (aka, six or the number of eggs most consumers can afford lately due to their high prices, but we digress) miscues made by taxpayers when filing their federal tax returns.
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, 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,' Delia says. '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,' Delia warns.
Using tax software can help catch some of these errors automatically, because most programs handle the math for you. However, it's still a good idea to manually review your calculations before submitting, especially if preparing your return without professional help.
Read more tax tips: Can you still get reimbursed for 2024 benefits plans? Here's what to know
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, inability to claim the item in a future year, oreven 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,' Delia warns.
If the IRS detects that the bank information provided doesn't match what it has on file for you, it 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,' Delia says.
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 or unable to sign, you can use a power of attorney or other legal document to complete the process.
Ken & Klee's Tax Notebook
Dawn Delia offers two other potential checklist items to consider when finalizing your return:
■ 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 compare your information to prior years as a check and have all your tax documents in hand, including anything related to new situations, before filing to avoid having to amend your return later.
■ The second mistake is missing out on deductions. As mentioned above, some people may overreach and include deductions to which they are not entitled, and the opposite can occur as well. 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 to Uncle Sam. Tax software or consulting with a tax professional can help ensure you're not missing out on savings.
So, whether using tax software, a tax professional or an old-fashioned method, remember that ultimately the buck stops with you, not the tools or people you are using to assist you. Be sure to give your return an "at 5,000 feet" or overall review and consider all of the above possible errors before filing!
Tax Talk is an outreach service of the Notre Dame, Saint Mary's College Vivian Harrington Gray Tax Assistance Program (TAP).
Rick Klee served as the Tax Director at the University of Notre Dame from 1998 through August 2019. A retired CPA, Klee is a graduate of Notre Dame. You can contact Rick at [e-mail].
Ken Milani, professor emeritus of accountancy at Notre Dame, served as the faculty coordinator of the TAP for 39 years and its technical coordinator for 14 years. Contact Ken at [e-mail].
E-mail questions to either.