Chances are that in the past few weeks, you’ve gotten some tax documents in the mail, or received emails reminding you to download tax documents.
For some people, filing taxes is quick and easy because they have few investments and just one regular job. But for others, tax season can be a bit overwhelming because there may be multiple investment accounts, businesses, side gigs and properties to report.
If you’re filing for the first time or need help determining what you owe, now is a good time to reach out for help! Most cities and counties offer free tax assistance to help you file your taxes on time. Just look up the name of your city or county plus “free tax assistance” to find out what services are available. You do not have to pay anything to file your taxes, and taking advantage of free, qualified resources can help you reduce your tax bill or maximize your refund!
Before you sit down to tackle your taxes (either on your own or with assistance), read this! It will help you avoid costly mistakes this spring when you file.
Mistake #1: Filing late (or not filing at all)!
By law, the vast majority of people in the United States have to file tax paperwork by April 15, 2025. If you made less than $14,600 (and you are single and under the age of 65), you might not have to file a tax return — but check with an expert because there are several exceptions to that rule.
If you need more time to file your taxes, you must file paperwork for an extension, which will give you an additional six months. However, if you think you’ll owe taxes, you do have to make an estimated payment by April 15, even if you are requesting an extension. Not filing your taxes on time can result in penalties and fines, so be sure you take care of this! Plus, if you’re due a refund, not filing your taxes means you won’t get your money back as quickly!
Mistake #2: Choosing the wrong filing status.
There are multiple different filing statuses for your taxes. You can choose from single, married filing jointly, married filing separately, head of household or surviving qualifying spouse. Choosing the right one matters because it determines what deductions you’re eligible to get! Make sure you understand the five statuses and which one you should choose by talking to a qualified tax professional.
Mistake #3: Claiming incorrect deductions or credits.
Most people can choose to take advantage of certain deductions or credits on their taxes to lower their bill. You can choose from a “standard” deduction, which lowers your income by a fixed amount, or itemize your deductions if you think you can lower your tax bill more that way. Which one you use depends entirely on your individual circumstances. Look at all of your possible deductions before you choose!
Mistake #4: Overlooking retirement account contributions.
Did you contribute to your retirement through work or individually? Don’t forget to include that information on your taxes! If you forget to tell the government what you contributed, you may be paying more in taxes than you need to be!
Mistake #5: Neglecting to report income.
This is especially pertinent if you have any side gigs, part-time jobs or sell anything. All of your income needs to be reported on your taxes. The IRS (and your state) can often figure out what income you’re getting, and failing to report all of your income could result in penalties and fines. Even if you did not get a tax form for some of your income, you need to report it.
Mistake #6: Neglecting to report charitable contributions.
Did you donate in 2024 to a nonprofit organization? Did you drop off old clothes at a charity, or donate time or money to a cause? If you did, you may be able to write off that donation or time, money or goods and lower your tax bill. If you can, make sure you have receipts and proof of donations so you can tell the IRS about those good deeds!
