Filing taxes for the first time can feel overwhelming. Between gathering documents, understanding deductions, and navigating IRS requirements, it’s easy to make costly mistakes. Whether you’re filing your first return or helping someone else get started, here are the most common pitfalls to avoid.
1. Missing or Incomplete Documents
One of the biggest mistakes first-time filers make is showing up to tax time without all necessary documents. Before you file, gather:
- Valid photo ID and Social Security card
- W-2 forms from your employer(s)
- 1099 forms for freelance work, unemployment, or investment income
- 1098 forms for mortgage interest or student loan payments
- Bank statements showing interest earned
- Documentation of charitable donations or medical expenses
Missing even one document can delay your filing or cause errors that trigger an audit. Start organizing these as soon as you receive them—don’t wait until April.
2. Choosing the Wrong Filing Status
Your filing status affects your tax rate, deductions, and eligibility for certain credits. Common mistakes include:
- Filing as “Single” when you should file “Married Filing Jointly” (which often results in lower taxes)
- Incorrectly claiming dependents
- Not understanding Head of Household requirements
If you’re unsure which status applies to you, ask a tax professional. Getting this wrong can cost you significant money.
3. Forgetting About Deductions and Credits
Many first-time filers leave money on the table by not claiming deductions and tax credits they qualify for. Common ones include:
- Standard deduction (if you don’t itemize)
- Child Tax Credit (up to $2,000 per child)
- Earned Income Tax Credit (EITC) (for low- to moderate-income earners)
- Education credits for tuition and student loan interest
- Home office deduction (if you’re self-employed)
Don’t just take the standard deduction without considering whether itemizing would save you more. Every dollar counts.
4. Math Errors and Typos
Simple arithmetic mistakes or typos on your return can flag your return for review by the IRS. Double-check:
- Your Social Security number
- Dependent information
- Income figures
- Calculated totals
Most tax software catches these errors automatically, but manual filers should be extra careful.
5. Missing Deadlines
The federal tax deadline is typically April 15th. Missing this date means penalties and interest on any taxes owed. If you can’t file on time, request an extension—it gives you until October 15th to file (though taxes are still due by April 15th).
6. Not Keeping Records
Keep copies of your filed return and all supporting documents for at least three years. The IRS can audit returns going back several years, and you’ll need these records to prove your deductions and credits.
7. Failing to Report All Income
Whether it’s from a part-time job, freelance work, or side gig, report all income. The IRS receives copies of 1099s and W-2s, so unreported income will be caught. It’s better to report it and claim legitimate deductions than to face penalties later.
Get Help When You Need It
Tax filing doesn’t have to be stressful or error-prone. If you’re unsure about any part of the process, don’t guess—reach out to a tax professional. At Moneta Tax LLC, we specialize in helping first-time filers avoid these mistakes and get the best possible outcome.
Ready to file with confidence? Schedule a free consultation with our team today. We’re here to make tax season simple.
