Filing your income taxes can often feel daunting, and making mistakes can lead to costly consequences. Whether it’s overpaying, underreporting income, or missing out on deductions, avoiding these common errors can help you maximize your refund and prevent penalties. Below are some of the most frequent income tax mistakes taxpayers make and tips on how to avoid them.

1. Missing Tax Filing Deadlines
   One of the easiest mistakes to make is missing the tax filing deadline. Late filings can result in penalties and interest charges, stressing a challenging task. If you need extra time to gather your documents, file for an extension before the due date. However, remember that while extensions give you more time to file, they don’t extend the deadline to pay any taxes owed.
2. Incorrectly Reporting Income
   Whether you’re a salaried employee or a freelancer, correctly reporting all your income is essential. Many taxpayers forget to report side gig income or freelance payments, which can lead to penalties. Ensure that all sources of income, such as W-2s, 1099s, or even digital income, are accurately included on your return to avoid issues later on.
3. Overlooking Tax Deductions and Credits
   There are numerous tax deductions and credits available to reduce your liability, but many taxpayers overlook them. Common missed deductions include student loan interest, medical expenses, and home office costs for freelancers. Review all available options to ensure you’re taking full advantage of potential savings.
4. Choosing the Wrong Filing Status
   Your filing status determines your tax rate and eligibility for credits and deductions. Whether single, married, or filing as head of household, choosing the correct status is crucial for avoiding errors and maximizing your refund.

To ensure your taxes are filed correctly, contact us at Citywide Income Tax Service. Let us help you avoid these common mistakes and secure the best possible outcome for your tax filing this year. Need assistance with your income tax filing? Contact us today for professional guidance and expert tax preparation to avoid mistakes and maximize your refund.