Tax season is here, and while you’re dreaming about that sweet refund landing in your bank account, the IRS is waiting for you to mess up. Seriously. One tiny mistake on your tax return, and boom—your refund gets delayed, or worse, flagged for an audit. But don’t worry, you’re smarter than that.
Here are the most common tax mistakes you should be aware of and helpful tips for tax season to avoid delaying your refund.
Filing With Incorrect Personal Information
It sounds obvious, but you’d be surprised how many people mess this up. A wrong Social Security number, a misspelled name, or an outdated address can put your return on ice. According to the IRS, missing or inaccurate Social Security numbers and misspelled names are frequent mistakes that can lead to processing delays.
Double-check everything before hitting “submit.” Your personal details should match what’s on your Social Security card. If you recently changed your name, update it with the Social Security Administration before filing.
Messing Up Your Income Reporting
If you earned money, the IRS expects to hear about it. Leaving out income—whether from a side hustle, freelance gig, or investments—can delay your refund or even trigger an audit. Keep track of all your income sources and make sure they match the forms you receive (like W-2s or 1099s).
If you’re self-employed, using accounting software or an app to track everything will make tax time much easier.
Taking Deductions You Can’t Prove
Claiming deductions and credits you’re not eligible for might seem like a great way to maximize your refund—until the IRS comes knocking. If they ask for proof and you don’t have it, you’re in trouble. Only claim deductions you can justify.
Receipts, bank statements, and other documentation should always back up your claims. If you’re claiming a home office deduction, for example, ensure that space is exclusively used for work.
Forgetting to Report Cryptocurrency Transactions
Crypto isn’t just for tech bros and investors anymore. If you bought, sold, or traded digital currency, the IRS wants to know. The IRS requires taxpayers to answer a digital assets question on their tax returns and report all related income. Leaving out crypto transactions can get your return flagged for review.
Using a crypto tax calculator or working with a tax professional can help ensure everything is reported correctly. Even if you just dabbled in Bitcoin or Ethereum, check that box on your return.
Not E-Filing When You Should
Filing a paper return is like sending a carrier pigeon when everyone else is using email. It’s slow, prone to errors, and increases the risk of delays. Choosing to e-file and opting for direct deposit speeds up the process significantly.
The IRS processes electronic returns much quicker than paper ones, which could take weeks (or even months) to process.
Making Math Mistakes (Even Small Ones)
Even in the digital age, math errors happen. If your numbers don’t add up, the IRS will put your refund on hold while they try to figure out what went wrong. Using tax software, an online calculator, or a professional tax preparer can help avoid simple but costly mistakes.
Even if you’re filing by hand (why?), go over everything carefully before sending it in.
Ignoring IRS Letters or Notices
If the IRS sends you a letter, don’t pretend it doesn’t exist. Ignoring it won’t make the problem go away. In fact, it’ll probably make things worse. Open the letter, read it, and take action. Sometimes, it’s just a simple request for clarification. If you’re unsure how to respond, talking to a tax professional is a good idea.
Forgetting to Sign Your Return
This one sounds ridiculous, but it happens more than you think. If you forget to sign your tax return, the IRS won’t process it. No signature, no refund. If you’re e-filing, use the correct PIN or AGI from last year’s return.
If you’re filing by mail (again, why?), double-check that you signed and dated all required sections before sending it off.
Not Updating Direct Deposit Information
Direct deposit is the fastest way to get your refund—unless you send it to an old or incorrect bank account. Then it’s just a headache. Always ensure your bank details are correct before submitting your return.
If your bank account has changed, update it in the system before filing to avoid unnecessary delays.
Missing the Filing Deadline
You’d think this is common sense, yet every year, people miss the deadline and get hit with penalties and interest charges. Mark your calendar. Set reminders. Do whatever it takes to file on time.
If you absolutely can’t file by the deadline, requesting an extension is an option—but remember, that only gives you more time to file, not more time to pay.
