Common Tax Mistakes Costing You Hundreds (And How to Avoid Them)

Introduction

The IRS processes over 150 million tax returns each year, and millions of them contain errors that cost taxpayers hundreds—or even thousands—of dollars. At Union National Tax, we have seen the same mistakes repeat year after year. Do not let these common errors reduce your refund or increase your tax bill.

Mistake #1: Not Reporting All Income

The Problem: Many taxpayers fail to report all their income, especially from side hustles, freelance work, or interest earnings. The IRS receives copies of all W-2s and 1099s, so they already know about your income.

The Cost: Penalties, interest, and potentially back taxes—even if you legitimately forgot.

How to Avoid: Keep records of all income sources. Report even small amounts from freelance work. Check all 1099 forms against your records. Include interest and dividend income.

Mistake #2: Claiming the Wrong Filing Status

The Problem: Filing status affects your tax rate, standard deduction, and eligibility for credits. Many people choose the wrong status out of confusion.

The Cost: Incorrect credits, wrong tax brackets, potential audit triggers.

Mistake #3: Missing Out on Deductions

The Problem: Many eligible taxpayers do not claim deductions they are entitled to, either because they do not know about them or do not keep proper records.

The Cost: Potentially thousands in lost savings.

Mistake #4: Incorrect Bank Account Information

The Problem: Typing the wrong account or routing number can delay your refund by weeks—or send money to the wrong person.

Mistake #5: Not Signing the Return

The Problem: An unsigned tax return is not valid. It is that simple.

Mistake #6: Math Errors

The Problem: Simple arithmetic mistakes trigger IRS review and delay processing.

Mistake #7: Missing Deadlines

The Problem: Filing late or paying late results in penalties and interest.

Mistake #8: Not Filing Even When You Cannot Pay

The Problem: Some people do not file because they cannot pay, making things worse.

Mistake #9: Forgetting About State Taxes

Mistake #10: Not Checking Tax Law Changes

Conclusion

Avoiding these common tax mistakes can save you hundreds—or even thousands—of dollars. At Union National Tax, we help our clients navigate these pitfalls every day. Need help avoiding tax mistakes? Let our experts review your return before you file!