Experts Reveal 3 CommonTax Mistakes That Could Cost You Big

Forbes

24-04-2025

Frustrated shocked african man having problems, feel confused looking at laptop screen at office
As tax season comes to a close each year, many Americans rush to meet the April 15 deadline and celebrate when they received a big refund. But according to tax experts, these popular strategies might actually be costing you money.
Mark J. Kohler, M.PR.A., C.P.A., J.D.,Founding and Senior Partner at KKOS Lawyers, specializing in tax, legal, wealth, estate, and asset protection planning and Timothy Wingate Jr., an IRS-certified tax specialist and founder of G+F Business & Financial Consulting, say taxpayers often fall for three common traps — and correcting them can lead to smarter financial decisions all year long.
Here's what people get wrong about taxes and how you can take a more strategic approach.
While the April 15 deadline is real, filing your return on that day isn't always required — or even wise.
'Contrary to popular opinion, it's not the end of the world if you don't file your personal 1040 tax return by April 15,' Kohler said. 'In fact, it can be very strategic to not file and instead submit an extension. Getting an extension gives you time to get all your records in order.'
Timothy Wingate Jr., an IRS-certified tax specialist and founder of G+F Business & Financial Consulting, agrees—and offers practical advice for how to do it right.
Here's how to file an extension the smart way, according to Wingate:
Filing an extension gives you until October 15 to submit your return—but remember, it doesn't delay the deadline to pay any taxes owed. To avoid penalties or interest, it's smart to send a payment by April 15, even if your paperwork isn't ready.
Most people celebrate a large refund check — but Kohler says that mindset needs to change.
'Our number one cost in life is taxes,' he said. 'If we can minimize that, we can deploy that money in other areas that make us money. That's the concept of tax planning.'
Rather than aiming for a big refund, aim to owe nothing — and keep more of your paycheck throughout the year.
Talk to a tax advisor about adjusting your withholdings, contributing to retirement accounts, or making strategic investments to reduce your taxable income.
With nearly 40% of Americans working a side hustle, treating that income seriously is more important than ever.
'Side hustles aren't just income streams — they're tax planning opportunities,' Kohler said. 'But too many people miss out because they don't keep records or claim expenses.'
'Keep separate accounts, track all expenses, and consult a tax professional,' he said. 'That way, you can legally deduct business expenses and potentially lower your overall tax bill.'
Accurate record-keeping is essential to claim these deductions — and to protect yourself in case of an audit.
Don't wait until tax season to think about your tax strategy. Avoiding these common mistakes — filing blindly by April 15, celebrating big refunds, and ignoring your side hustle's business status — can help you keep more of your money.
Instead, work with a trusted tax advisor, file smarter (not faster), and take full advantage of deductions and planning strategies year-round. Your future finances will thank you.