Once again, it's time for every taxpayer to complete their annual taxes and pay the IRS on time. You should feel proud of yourself if you already submitted and paid your taxes. Ideally, you wouldn't have committed any mistakes; if you have, you may have more time to make the necessary corrections before the tax due time because of your early filing.

You could be putting yourself in a situation where you have to rush or forget to file for a tax increase on time if you wait until the last minute. Let's discuss some of the common mistakes to avoid while filing taxes.

8 Tax Filing Mistakes to Avoid This Year

Here are eight typical tax filing errors, along with tips for avoiding them.

You Mishandle the Fundamentals

Verify the spelling of your name, the names of your dependents, and the Social Security numbers. Also, make sure you choose the appropriate filing category for your circumstances. For instance, if you're single, you can file as such. However, if you fulfill the qualifications for head of household status or qualified widow(er) with a dependent child, you can be eligible for various tax benefits and more favorable tax rates.

Additionally, filing independently rather than jointly may result in married couples paying less tax overall in some situations. If more than one claiming status applies, the IRS.gov Interactive Tax Assistant can assist you in selecting the appropriate status.

Items are not Entered on the Appropriate Line

Verify that the entries on your tax documents show where you wish them to be. Don't, for instance, enter your tax-free IRA transfer on the line intended for withdrawals from taxable IRAs. This problem should be avoided if you use tax software, but before submitting, make sure everything appears where it should.

You Refuse to Accept Write-offs that are Legally Yours

Some people could be afraid that a certain deduction constitutes a red flag for an audit and avoid it. For instance, there is still a misconception that declaring a home and workplace deduction will result in an audit by the IRS. This is undoubtedly untrue, especially in light of the fact that many individuals now work from home and that the IRS established a simplified deduction option instead of writing off real expenditures.

It makes sense to claim the deduction if you are eligible under tax rules. But this is a huge mistake, since you are self-employed, you may only claim a deduction for your home office if you really utilize it. Unreimbursed home office expenditures are often not deductible by employees of businesses as a special deduction on Schedule A.

You Deduct the Standard Deduction Automatically

Even while itemizing involves more work than relying only on the standard deduction—along with receipts and other documentation—you run the risk of losing money if you do so.

Verify which option offers you the most write-off. It should be noted that the Tax Cuts and Jobs Act of 2018 roughly quadrupled the standard deduction, making itemizing less likely to result in cost savings. Nevertheless, doing the statistics both ways never hurt. The majority of tax software determines which approach is best for you on its own.

Information Submitted to you is not Entered by You

You should input with caution any wages, payments in dividends, bank interest, or other income you received and report on the informational return (the defendants-2, 1099, K-1, etc.). The IRS has also received reports on these forms, and federal computers are searching for this data to match.

You should contest the information that has been supplied to you, get in touch with the company that handled the payment (such as your employer), and ask for a revised form. By the beginning of next month, if you haven't received a revised form, you can file a Form W-2 dispute with the IRS by calling (800) 829-1040.

You Overlooked your Individual Mandate for State Healthcare

Regarding your federal taxes, the individual requirement of the (ACA) was repealed in 2019. This mandate required you to pay a penalty charge for every single month that you (or the members of your household, if relevant) did not have qualified health coverage. Make sure you are aware of your state's requirements since several states have their own unique health insurance mandates.

Six states, plus the District of Columbia, have individual health insurance mandates as of the 2023 tax year: CMS. "State-based Exchanges."

1. California
2. The District of Columbia
3. Massachusetts
4. New Jersey
5. Rhode Island, Vermont

You Don't Proofread for Errors

It's simple to transpose a number or omit a digit, which might skew the data you're reporting. As an illustration, let's assume you made $5,200 in contributions to your private retirement fund (IRA), but you unintentionally included the amount of $2,500 as a charitable contribution on your tax return, depriving yourself of a $2,700 deduction (which, if you're in the quarter tax bracket, would cost you an additional $648 in taxes).

You Make Errors in Arithmetic

Math errors were among the most frequent filing errors, according to the IRS. These might be as simple as addition and subtraction or as complicated as calculations. Always verify your calculations twice, or even better, utilize the software for tax preparation that does the calculations.

See the IRS guidelines if you must submit a product as a value that is negative. While some versions use the minus sign, others prefer to use parentheses. This guarantees that the negative input is accurately read by IRS computers. For instance, type ($500) in place of -$500 if you wish to show a $500 loss on your return (of course, on the relevant line).

The Bottom Line!

Make sure you fill out the tax return every time. Unless you sign it or your spouse if you file jointly, it is not legitimate. Maintain a copy of your approved return and proof of filing (a certified confirmation for a printed return mailed by email or an acknowledgment that the IRS has accepted your e-filed return).

Possessing this documentation shields you against any IRS accusations that you failed to submit or file on time. Additionally, if you ever need to submit an amended return or future tax returns, your previous tax returns will be helpful.