Common Tax Filing Mistakes and How To Avoid Them

Whether it’s your first time filing taxes or you’re a seasoned pro, the process can feel overwhelming. Between organizing financial documents and navigating deductions and credits, there’s a lot to manage, and even a small oversight can lead to costly mistakes.

We want to help you simplify your tax filing experience so you can make the most of every opportunity to save. By avoiding common errors and with an appreciation for the importance of diligent record-keeping, you’ll be on your way to a smoother tax season.

The Basics of Tax Season

A solid understanding of tax season timelines and processes will set you up for success and help you avoid unnecessary headaches. Let’s start with the basics.

When Is Tax Season?

Tax season typically starts in January and ends with the federal filing deadline on April 15, though this date occasionally shifts due to weekends or holidays.

We advise against waiting until mid-April to begin organizing your documents. Starting earlier gives you time to address missing paperwork and identify deductions you might otherwise overlook, which we will cover later in this guide.

When Can You Start Filing Your Taxes?

The IRS usually begins accepting tax returns in late January, right at the beginning of tax season. While this date provides a starting point for early filers, submitting your return too soon can also lead to errors if you haven’t received all your necessary documents, such as W-2s or 1099s.

This is a common hiccup for many people filing their taxes, so make sure you don’t rush before confirming the accuracy of your information. Filing an amended return later is possible, but it can delay your refund and add unnecessary stress.

How To Extend Your Tax Filing

If you’re unable to meet the April filing deadline, you can apply for an extension, giving you until mid-October to submit your return. To qualify, you mustfile IRS Form 4868 by the April deadline.

However, remember that an extension only applies to the submission of your return—not to the payment of any taxes owed. A common mistake is assuming that an extension means postponing payment, which can result in late fees and interest charges.

Take Advantage of Your Deductions

While there are plenty of potential pitfalls during tax season, it’s equally important to focus on opportunities to save. One of the best ways to reduce your tax bill is by taking full advantage of deductions.

The government offers deductions to incentivize certain behaviors, such as charitable giving or pursuing education, that benefit society as a whole. Let’s explore some of the most commonly overlooked deductions and how they can help you save money.

Deductions Available Through Your Small Business

Your small business can help save you money! Don’t miss out on valuable deductions, such as those for mileage incurred while using a personal vehicle for business purposes or the cost of purchasing inventory. These savings can significantly offset your expenses and may even open financial room to expand.

Your small business doesn’t even need to be your primary source of income. Side hustles and hobbies that meet specific criteria may also qualify for deductions. Be sure to research eligibility requirements to maximize your savings.

Education and Professional Development Expenses

If you’re a student or a professional looking to enhance your skills, educational expenses can often be deducted from your taxable income. This includes tuition fees, course materials, travel expenses for training programs, and even apprenticeship costs.

Investing in professional development can be expensive, but taking advantage of these deductions helps offset the cost and encourages growth in your career or field of study.

Charitable Contributions

Donating to charity not only supports causes you care about but can also reduce your tax bill. It’s a win-win! You can deduct qualifying donations made to recognized organizations up to certain limits—typically 60% of adjusted gross income for individual filers.

If you haven’t made charitable contributions before, it may make financial sense to start. Deductions for donations can offset your tax liability while benefiting your community. Remember to keep detailed records, including receipts and donation acknowledgment letters, for verification.

Keep Your Records Organized and Accessible in a Climate-Controlled Storage Unit

Tax season doesn’t have to be stressful. By organizing your records in the stable environment of a climate-controlled storage unit, you’ll simplify the entire process and avoid unnecessary headaches.

If you’re holding onto receipts, invoices, or previous tax returns, Access Self Storage offers reliable self storage units in a variety of sizes to help you stay organized and focused on your financial success.

Call us to reserve your storage unit today and learn more about how we can help you stay organized year-round.