7 Common Mistakes Americans Make When Filing Tax Returns

Death may be as inevitable as taxes, but to some folks, it's not half as scary. Who doesn't worry about making a mistake and incurring the wrath of Uncle Sam?

Some of the common mistakes we make when filing taxes simply mean a delay in processing. Other mistakes can lead to fines or, in the worst case, a complete audit.

Worried about what you might be missing? Here are some common mistakes to avoid.

1. Filing too late

This one might be a bit obvious, but it's still one that many folks risk every year. One study found that 21% of people plan to wait until April to file their taxes this year, putting them right up against that April 15, 2024 deadline.

If you don't owe any taxes or are due a refund, there is no penalty for filing late.

However, if you owe taxes, filing late comes with a big penalty: A fee of 5% of the unpaid taxes for each month that the return is late. (This penalty won't exceed 25% of your unpaid taxes.)

Depending on your circumstances, you may be able to get the penalty waived. The better course of action, though, is to file for an extension as soon as you realize you won't make the deadline. (Note that if you owe taxes, you will still need to pay by April 15, or risk that penalty -- an extension just gives you longer to file your return.)

2. Filing too early

Lots of folks like to get an early start on their taxes -- just make sure you aren't too early. Technically, you can generally start filing your taxes around Jan. 29, but you could risk missing out on vital documents. In some cases, you may not even get your W-2 until February.

Your W-2 (or 1099s if you're a contractor) is hardly the only document you may need to wait for, either. For example, you'll also need to wait until you have any relevant documents for retirement and/or investment accounts. Interest-bearing savings accounts may also require a separate tax form.

Many modern institutions will offer you the ability to get copies of important tax forms through your online account. More old-school businesses, banks, and credit unions may make you wait on snail-mail, however.

3. Spelling mistakes

Have you ever had that weird nightmare where you're taking the SATs and spell your own name wrong? Well, the adult version is screwing up your own name while filing your taxes.

The name you use when filing your taxes should match the name on your Social Security card. Avoid nicknames and abbreviations. You may also want to double -- or triple -- check that you haven't mistyped anything before moving on to the next step.

4. Math errors

I do math every day as a part of my job, and I still mess up simple calculations sometimes. It happens. But when it happens while you're filing your taxes, those mess ups can have costly consequences.

If you're filing your taxes by hand, make sure any calculations are done at least twice for verification. Better yet, use a tax-filing program that does the math on your behalf. (If you make $79,000 or less, you could file online for free.)

Folks with really complicated taxes may want to pony up for a professional to do the math -- and everything else.

5. Wrong filing status

The status you use when filing your taxes can determine how much of a standard deduction you can take. Using the wrong status when you file can mean you're missing out on tax deductions or that you're taking too many. (Either case is bad.)

There are five options for filing status:

• Single: You're unmarried, divorced, or legally separated.
• Married filing jointly: You're married and filing together.
• Married filing separately: You're married, but each person is filing independently.
• Head of household: You're unmarried but responsible for at least one dependent.
• Qualifying widow(er) with dependent child: May apply if your spouse died within the last two years.

If you realize you've used the wrong filing status, you can amend your return. You can do this by using Form 1040X. Depending on the tax-filing software you use, you may also be able to amend your return directly through your software provider.

6. Unsigned forms

Paperwork without proper signatures doesn't get filed. This can cause serious delays in processing your return. Always make super duper sure that you've signed or initialed everywhere that's required before mailing off your paperwork.

(This is another one of those mistakes that's a lot harder to make when you file using software. The software programs won't let you submit the return without an e-signature.)

7. Incorrect bank info

Sure, it's better to have no refund than a large refund. But if you do get a refund, it's pretty sweet when it shows up in your bank account automatically thanks to direct deposit.

Of course, that can only happen if you enter the correct bank account information when filing your return. Always verify your routing and account numbers are correct to prevent delays in (or, worse, the loss of) your refund.

Haste makes…audits?

A lot of the small mistakes we make on paperwork every day have minor, if any, repercussions. Others are more consequential. Either way, it's best to avoid them whenever possible.

Take your time while filing your taxes to ensure you aren't missing (or messing up) any important info. Or ditch the paper and pen entirely for a digital filing experience that helps limit the mistakes you can make.