Common Tax Filing Errors to Avoid This Tax Season

Whether you are an experienced taxpayer, filing for the first time, or a military member with unique tax considerations, no one likes stressing about taxes. But don’t worry—filing your taxes doesn’t have to be overwhelming. By avoiding some common mistakes, you can save time, reduce stress, and steer clear of unwanted IRS issues. Here are 10 tax filing errors and how to avoid them.

1. Filing Your Taxes Too Soon

• COMMON ERROR: Filing early can seem productive, but if you submit your return before receiving all necessary forms (like a W-2 or 1099), it could lead to amendments and processing delays.
• SOLUTION: A little patience can save you time and hassle later on! Wait until all required forms Employers and financial institutions must send them out by January 31.

2. Failing to Sign and Date Your Tax Return

• COMMON ERROR: An unsigned tax return is considered invalid. This mistake most frequently happens to individuals filing by paper, and it can result in delays or even rejection of the return.
• SOLUTION: Review your tax return for all required signatures—it’s easy to overlook how many there are. If you are filing online, don’t forget to include your PIN or use the IRS electronic signature option.

3. Math Mistakes

• COMMON ERROR: Even minor math mistakes can flag your return and cause delays—or worse, an IRS inquiry. These small missteps are surprisingly common.
• SOLUTION: Tax software can help reduce calculation errors. If you are filing by hand, double-check all figures. When in doubt, a trusted tax professional can assist in crunching the numbers.

4. Overlooking Tax Credits and Deductions

• COMMON ERROR: Each year, millions of people miss out on credits and deductions they are eligible for. Don’t leave your money behind!
• SOLUTION: Familiarize yourself with applicable credits and deductions, such as the Child Tax Credit, Earned Income Tax Credit, or military-specific deductions. If you are unsure, consult a tax advisor to maximize your refund.

Quick Tip: Military members and their families have access to unique tax benefits like combat zone exclusions and deductible moving expenses. Learn how to make the most of these advantages by checking out our guide on military tax benefits. 

5. Inaccurate Income Reporting

• COMMON ERROR: Income errors can occur if you leave out your earnings from freelance work, secondary jobs, or other sources. Since the IRS receives copies of all W-2s and 1099s, everything must match up. Otherwise, you could face penalties or delays in your refund.
• SOLUTION: Double-check that all income sources are reported accurately. Keep careful track of additional income, such as part-time work or rental properties, and compare your numbers with IRS-provided documents to make sure things are consistent.

6. Mistakes with Personal Information

• COMMON ERROR: Sometimes it’s the small details—like a typo in your Social Security Number (SSN) or an incorrect account number—that delays your refunds or invalidates your tax returns. In other cases, it might mean no refund at all.
• SOLUTION: Carefully review your personal information, including addresses, Social Security Numbers, and bank account numbers.

Quick Tip: If you are an Armed Forces Bank client, you can securely access your account details through our Online Banking platform. From your profile, select your account and click the details tab to access your full account number.

7. Choosing the Wrong Tax Filing Status as a Married Couple

• COMMON ERROR: If you got married during the tax year, filing as “Single” is no longer a choice. While filing jointly often offers better tax benefits, it’s not always the best option. Choosing the wrong status can lead to unnecessary costs.
• SOLUTION: Evaluate whether “Married Filing Jointly” or “Married Filing Separately” works best for your situation. Tools like online filing calculators or advice from a tax professional can help guide you in finding the best filing approach.

8. Forgetting to File Taxes for a Deceased Person

• COMMON ERROR: If a loved one passes during the tax year, their taxes still need to be filed. Overlooking this obligation can complicate administrative matters later.
• SOLUTION: As the executor or personal representative of the deceased, file the final tax return (Form 1040) as you would for a living taxpayer, but add "Deceased" after their name. If the person had income from investments, property, or other sources after death, you may also need to file a separate estate tax return (Form 1041, U.S. Income Tax Return for Estates and Trusts).

9. Not Keeping Your Tax Records

• COMMON ERROR: Don’t toss that tax receipt from six months ago! If you fail to keep proper records, such as tax forms or past returns, you could face some serious issues if the IRS audits you.
• SOLUTION: Hold on to important documents like W-2s, 1099s, deductible expense receipts, and prior returns for at least three years. Keep them safe and organized, either physically or digitally, so they are easily accessible if the IRS requests them or you need to make amendments.

10. Failing to Meet Tax Deadlines

• COMMON ERROR: Filing your taxes late can lead to financial penalties, interest, and unneeded stress.
• SOLUTION: Mark key dates like Tax Day (April 15) on your calendar. Keep in mind, if this date falls on a weekend or Federal Holiday, the deadline moves to the next business day. For anyone struggling to meet the deadline, filing an extension is a great way to avoid penalties. The tax extension deadline is October 15.

Marching Through Tax Season

We know tax season can be challenging, especially when balancing deployments, relocations, or other life transitions. But it doesn’t have to be a battle if you steer clear of common mistakes. Double-check your details, confirm your information, and don’t hesitate to use tools or consult a professional for backup.

Armed Forces Bank is ready to help you march through tax season! As a trusted military bank, we offer resources like our Mortgage and Tax Calculator, Marginal Tax Rate Calculator, 1040 Tax Calculator, 1040EZ Tax Calculator, Traditional IRA Calculator, and Roth IRA Conversion Calculator to make your experience easier.

Need your Armed Forces Bank account info? The routing number is 101108319, which you can also find at the very bottom of our bank website, under “Contact Us.” To find your bank account number, log into online banking, select your account, then click the "Details" tab to view the full number.

With a little preparation, tax season will be a smooth ride with Armed Forces Bank by your side!

MORE RESOURCES FOR TAX SEASON:

What Financial Moves Should I Make to Prepare for Tax Season?
What Security Precautions Should I Take During Tax Season?
How Do You Build Credit with a Tax Refund?
How Should I Use My Tax Refund?
How Do You Calculate the Marginal Tax Rate?
How Do You Calculate Mortgage Tax Deduction?
How Do You Calculate Tax on 1040?
How Do You Calculate Taxable Interest for 1040ez?
How Are Taxes Calculated on Roth IRA Conversion?

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