Common Tax Mistakes That Cost Taxpayers More Money During Filing Season Tax season is inherently stressful, but avoidable errors can transform a routine filing into a costly ordeal. With Tax Day just 10 days away, even minor mistakes can lead to delays, IRS notices, or unexpected penalties. Here are five common filing missteps to avoid and how to prevent them. Choosing the Wrong Filing Status Your filing status is a critical determinant of your tax rate, standard deduction, and eligibility for credits. Selecting the incorrect status can result in overpayment, a smaller refund, or delays if the IRS flags the return for review. Confusion often arises from life changes such as marriage, divorce, having a child, or supporting an aging parent. For example, claiming "head of household" incorrectly can lead to penalties if the taxpayer does not meet the strict criteria, such as paying more than half the cost of maintaining a home and having a qualifying dependent. The IRS provides an online tool to help taxpayers determine their status, and many tax software programs offer guidance through interactive questionnaires. Leaving Credits on the Table Failing to claim all eligible credits or deductions is one of the most expensive mistakes taxpayers can make. This can reduce refunds or increase tax bills. Bill Sweeney, senior vice president of government affairs at AARP, emphasized that many taxpayers overlook available deductions due to a lack of awareness or reliance on last year’s return. Recent changes to the tax code, including provisions from the One Big Beautiful Bill Act, mean that strategies from previous years may no longer apply. Sweeney urged taxpayers to conduct a fresh review of their financial situation to identify potential savings.#aarp #irs #one_big_beautiful_bill_act #mike_faulkender #bill_sweeney
