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Tax

Taxpayers' most common goofs

By Jeff Stimpson
February 1, 2023 12:35 PM

To err is inevitable: You tell 'em and tell 'em and tell 'em again, but taxpayers keep making the same mistakes on tax returns.

As another season kicks off you, can no doubt look forward to weeks of seeing these missteps. Thanks to the Internal Revenue Service for the countdown.

Filing too early

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No, for sure your clients shouldn't file late, but they also don't always wait until they have all their reporting documents — opening the door to a processing delay (and we don't need more of those).

Missing or inaccurate SSNs

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Nine digits but way more chances than that to mess it up. Each Social Security number on a return should appear exactly as printed on the Social Security card, but frequently they don't. (Also, have them double-check that they've given the right number to employers and financial institutions.)

Misspelled names

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Remember that episode of "The Odd Couple" when Oscar accidently typed his last name as "Madisoy?" Same thing — except the IRS has to sort it out and that can mean more headaches. Easy reminder for everyone: Match the names of all taxpayers and dependents listed on the return to the names on their Social Security cards.

Inaccurate information

Erasing mistake on a tax return
Wages, dividends, bank interest, other income (do not forget those gigs …) simply must add up to the correct amounts to calculate tax, credits and deductions. In an age when every smart phone can be a scientific calculator in a second, it's amazing how many folks still miss this.

Incorrect filing status

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You would think most people would know if they're filing taxes with somebody else. Or if they're married.

Math mistakes

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Abundantly common and ranging from simple addition and subtraction to more complex calculations (did we mention cell phones?). And is there some law against double-checking?

Figuring credits or deductions

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You must admit, this one can be tough given the sea changes in fundamental federal tax philosophy every four years, and in just the few years of the pandemic. Especially tricky: the Earned Income Tax Credit, the Child and Dependent Care Credit and the Child Tax Credit. 

Incorrect bank account numbers

Checkbook.io digital check
Direct deposit's a dandy way to funnel that refund right into their wallet — but only if the IRS knows where to funnel it. Let's try to remember, though, that younger clients especially may never have written a check in their lives, let alone noticed that sci fi-looking routing number on the lower left.

Unsigned forms

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This happened to Ralph once on "The Honeymooners" (TV and taxes: perfect together …). An unsigned tax return won't fly, though there can be exceptions for members of the armed forces or taxpayers who have a valid power of attorney.

Disreputable tax preparers

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No matter how often you clean out the barrel, rotten apples get in. Tout your credentials.
Jeff Stimpson
Freelance writer
Tax IRS Tax season Tax returns
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