5 Costly Tax Return Errors and How to Avoid Them

More than 162 million tax returns were filed in 2023 for the tax year 2022. So it's fair to assume a similar number will be rolling into the IRS this year for tax year 2023. With millions of returns to process, IRS employees are trained to spot mistakes -- large and small. According to the IRS, here are some of the most common errors taxpayers make each year that are completely avoidable, and how you can sidestep these mistakes.

1. Don't file too early

If you're expecting a refund this year, it's natural to want the money in your checking account as soon as possible. However, that enthusiasm could lead to an easy-to-avoid mistake: Filing too early. You should never file late. However, filing before receiving all the documentation you need to complete an accurate return will likely lead to a processing delay.

If you're anxious to get your return done, comb through a tax return first to ensure you have everything you need. While it can be tempting to estimate numbers, your best bet is to wait for the documentation you need to get it right.

2. Don't rush

A few years ago, OnePoll surveyed 2,000 Americans on behalf of H&R Block. The study found that Americans are so busy they only have four hours and 26 minutes of free time a week. What's more, 4 out of 10 respondents say they actually have less free time.

If that sounds a lot like you, it would be natural to want to get your tax return finished as quickly as possible so you can get on to other important tasks. According to the IRS, rushing leads to mistakes. Here's a sample of the errors most commonly flagged:

• Misspellings: It's possible to misspell anything, from your name to the name of your employer.
• Missing Social Security number (SSN): Forgetting to add your SSN (or the SSN of your spouse and/or children) can put the brakes on processing your return.
• Checking the wrong filing status: Make sure you understand each filing status and choose the one that fits your situation.
• Math mistakes: Math mistakes are easy to make, even when you're not in a hurry. It's even more common when you're in a rush.

3. Don't be afraid to ask questions

For the average American, taxes can be intimidating and confusing. If you're trying to figure out factors like the Child and Dependent Care Credit, Child Tax Credit, Earned Income Tax Credit, or Recovery Rebate Credit, you don't have to go it alone. If you're using tax software, you'll probably be walked through the process, which can help tremendously.

However, there's no shame in admitting that you're still confused, despite the assistance of tax software. If you're filling out an individual tax return and find yourself searching for answers, IRS representatives are available 24 hours a day, Monday through Friday. To contact a representative, call 1-800-829-1040.

You can also order tax forms and instructions by calling 1-800-829-3676 or find forms, publications, and other helpful information at the IRS website.

If you're still unsure of what you're doing, consider paying a tax preparation service to complete your return. AARP Foundation Tax-Aide is available nationwide and offers free tax preparation to adults 50 and older and taxpayers with low to moderate incomes.

4. Check and double-check

The fastest way to receive a tax refund is by choosing direct deposit. If you want your refund deposited directly into your bank account, double-check the routing and account numbers on your return to ensure they're correct. Being off by even one number can slow the processing time to a crawl.

Before pushing "send" or mailing your return, go through the entire return one last time, looking for any potential spelling errors, missing names, missing SSNs, or lines you forgot to fill in.

5. Collect signatures

Finally, make sure you've signed the return and, if you're filing jointly, your spouse has also signed the return. Unsigned tax returns are not considered valid and will be sent back unprocessed. The only exceptions may apply to taxpayers with a valid power of attorney or members of the armed forces.

The easiest way to avoid this simple mistake is to digitally sign your return and file it electronically.

The moral of the story is that taking your time to file your return is the best way to receive a timely refund.