How to Avoid Common Tax Filing Mistakes and IRS Audits

Tax season is officially underway in the United States. While filing taxes is a yearly responsibility, it can be a stressful process—especially for first-time filers or new small business owners.

Making a mistake on your return can lead to delayed refunds, unexpected bills, or even an IRS audit.

To help you navigate this season smoothly, here are the most common mistakes taxpayers make and tips on how to avoid them.
 

1. Waiting Until the Last Minute

According to the financial firm IPX, one in four people wait until the final moments to file their taxes. When you rush, you are much more likely to forget important forms or overlook tax credits that could save you money.
 

2. Simple Typos and Basic Errors

One of the most frequent reasons for a delayed tax return is a simple typo. Incorrectly entering your Social Security number or misspelling a name can halt the entire process.

Always double-check that your basic personal information matches your official documents exactly.
 

3. Claiming Business Losses Every Year

If you own a business, reporting a loss can sometimes lower your tax bill. However, if you report a loss every single year, the IRS may begin to wonder if yours is a legitimate business.

They may question whether your business expenses are truly necessary or if the "business" is actually a hobby.
 

4. Not Filing Because "I Didn't Earn Enough"

Many people skip filing because they believe their income was too low. While it is true that some people aren't required to file, there are very specific limits you should know.

Following the current guidelines, you are generally not required to file a return only if:
 

• Single (under 65): You earned less than $15,750.
• Married filing jointly (under 65): You earned less than $31,500.

If you earned more than these amounts, you must file. Even if you earned less, you might still want to file to get a refund of any taxes that were withheld from your paycheck.
 

How to Stay Ahead

The best way to avoid stress is to gather your documents early. Make sure you have the following ready before you start:
 

1. W-2s (from your employers)
2. 1099s (for freelance or contract work)
3. Proof of income and any receipts for deductible expenses
4. Records of tax credits you plan to claim

By organizing this information ahead of time, you can speed up the processing of your return and significantly reduce the chance of making a mistake.

Additionally, the IRS provides various online tools that allow you to check your tax history and previous payments to ensure everything is accurate before you hit "submit."

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