SUMMARY
- Avoid common tax filing mistakes that can delay refunds or trigger IRS penalties.
- Double-check credits, deductions, Social Security numbers, and filing status.
- Always file your tax return, even if you can’t pay what you owe.
- Track charitable donations and life changes to maximize your refund.
- Consider IRS Free File, tax software, or professional help for accuracy.
You tear open the letter marked “Internal Revenue Service,” hoping it contains an unexpected tax refund. But instead, you discover you owe more than expected due to a tax return error. Your heart sinks as you wonder how you’ll pay the bill.
To avoid this stressful scenario, it’s important to file your taxes carefully and accurately. Even small mistakes can delay your refund, reduce your tax credits, or result in IRS penalties and interest.
As we’re in the heart of the 2026 tax season, here are six common tax filing mistakes to avoid, and one nice discount. Be on the lookout for links to the IRS.gov site for additional details on common tax filing topics. Please consult a tax professional for the most current data and personal advice for your situation.
1. Claiming the wrong tax credits or deductions.
The U.S. tax code remains incredibly complex, with thousands of pages of laws and IRS guidance. Even experienced tax filers can miss valuable tax deductions or incorrectly claim tax credits.
Commonly misreported items include:
- Earned Income Tax Credit (EITC): Earned income includes all the taxable income and wages received for working for someone else, yourself, or from a business or farm you own. The maximum amount of credit for 3 or more qualifying children is $8,046. Visit this page on the IRS.gov site for details.
- Child Tax Credit: This credit helps families with qualifying children get a tax break. Visit the Child Tax Credit page on IRS.gov for qualifications.
- Education credits: These credits help cover the cost of higher education. They can reduce the amount of tax owed on your tax return or may increase your refund. There are two education credits available.
- American Opportunity Tax Credit (AOTC): This credit is for qualified education expenses paid for an eligible student for the first 4 years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you. The amount of the credit is 100 percent of the first $2,000 of qualified education expenses you paid for each eligible student and 25 percent of the next $2,000 of qualified education expenses you paid for that student. Visit IRS.gov to learn who is eligible.
- Lifetime Learning Credit (LLC): The lifetime learning credit (LLC) is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate, and professional degree courses, including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return.
IMPORTANT: You can claim only one credit per qualifying student. You can claim both the AOTC and LLC on the same return only if they are not for the same student and the same expenses. No double benefit is allowed.
- Home office deductions: Qualified taxpayers can deduct certain home expenses when they file taxes. To claim the home office deduction on your tax return, you generally must exclusively and regularly use part of your home or a separate structure on your property as your primary place of business. View these FAQs to learn more.
If you have a small business, freelance income, gig work, investment income, or major life changes, consider using reputable tax software or working with a qualified tax professional. The IRS also offers IRS Free File options for eligible taxpayers with an adjusted gross income of $89,000 or less.
Getting this right can mean the difference between a refund and an IRS notice.
2. Making math errors.
While most modern tax software automatically calculates totals, manual entries can still cause problems. Incorrect income figures, mistyped Social Security numbers, or transposed numbers are common causes of processing delays.
To reduce errors:
- Use e-file whenever possible.
- Double-check all your W-2s, 1099s, and income statements.
- Review your routing and account numbers for direct deposit. If you’re due a refund, the last thing you want is for it to get lost, stolen, or thrown out because you entered incorrect information.
Electronic filing with direct deposit remains the fastest way to receive a refund in 2026.
3. Using outdated personal information.
Life changes affect your taxes more than you might realize.
Make sure to update:
- Marital status
- Dependents (birth or adoption)
- Address changes
- Banking information
- Name changes reported to Social Security
Failing to update your filing status or dependent information could reduce your refund or delay processing.
4. Forgetting to sign and verify your return.
An unsigned tax return is not considered valid.
If filing jointly, both spouses must sign. When e-filing, you’ll use an Identity Protection PIN (IP PIN) or prior-year Adjusted Gross Income (AGI) to verify your identity.
Before submitting, double-check:
- Social Security numbers
- Date of birth
- Direct deposit details
- Attached forms and schedules
- Payment amount (if owed)
Missing or incorrect information can delay your refund or trigger IRS correspondence.
5. Overlooking charitable donations.
If you itemize deductions, charitable contributions can lower your taxable income.
Keep documentation for:
- Cash donations
- Non-cash donations (clothing, goods)
- Mileage driven for charitable work
For any single donation of $250 or more, you must have a written acknowledgment from the charity.
Maintaining digital records throughout the year makes tax time much easier.
6. Not filing at all.
One of the biggest tax mistakes is failing to file.
Even if:
- Your income is low
- You can’t afford to pay what you owe
- You’re unsure whether you’re required to file
You may still qualify for refundable credits, such as the Earned Income Tax Credit (EITC). Not filing could mean missing out on money.
If you owe taxes but can’t pay in full, file your return anyway and explore:
- IRS installment agreements
- Short-term payment plans
- Penalty relief options
- Filing extensions (Form 4868)
Failing to file typically results in higher penalties than failing to pay.
One nice discount: Save on tax preparation.
Now that you know some tax filing mistakes to avoid, here’s how to get help filing your taxes in 2026, and special FIGFCU Member discounts. The following offers are provided by third-party providers and are not affiliated with or endorsed by the Credit Union. Terms and conditions apply.
- Save 20% on TurboTax federal products*
- Save up to $25 on H&R Block professional tax preparation**
- Enter for a chance to win $10,000 through the Love My Credit Union Rewards Tax Time Sweepstakes† No purchase necessary. Open to eligible members 18+. See official rules below.
Don’t let the cost of filing a tax return prevent you from submitting a return.
- The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) program offers free basic tax return prep assistance. Qualified individuals who generally make $69,000 or less, have a disability, or are limited English-speaking taxpayers can get free tax help, click here to find a provider near you.
- AARP Foundation Tax-Aid also offers free tax assistance. To find a location nearest you, click here. Services vary by location.
Explore your options and choose the filing method that gives you confidence and peace of mind.
Final thoughts.
Tax season doesn’t have to be stressful or filled with costly mistakes. By avoiding common tax filing errors, double-checking your information, and filing on time, even if you can’t pay in full, you can protect your refund and avoid unnecessary IRS penalties. Staying organized throughout the year, tracking deductions and credits, and reviewing your return carefully can make filing simpler and more predictable.
While many people look forward to receiving a tax refund, in some years you may owe. Instead of scrambling to cover an unexpected tax bill, consider building a tax savings buffer throughout the year. Setting aside small automatic deposits into a dedicated Tax Saver Account can help you prepare for:
- Quarterly estimated tax payments
- Self-employment taxes
- Unexpected tax bills
And if you don’t end up owing taxes, those funds can be used to invest, celebrate, or strengthen your emergency savings.
A little preparation today can lead to a smoother, more confident tax season year after year. Here’s to a smooth, accurate, and stress-free tax season!
This article is provided for educational purposes only and is not intended as financial or legal advice. Members should contact the Credit Union for guidance regarding their individual situation. Please consult a tax professional for the most current data and personal advice for your situation.
*TurboTax Offer: Visit http://turbotax.intuit.com/lp/yoy/guarantees.jsp for TurboTax product guarantees and other important information. Limited time offer for TurboTax 2025. Discount applies to TurboTax federal products only. Actual prices are determined at the time of print or e-file and are subject to change without notice. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries.
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†Sweepstakes: NO PURCHASE NECESSARY. Legal residents of the 50 United States (D.C.) 18 years or older who are members or employees of a U.S. credit union. Ends 4/15/26. To enter and for Official Rules, including odds and prize descriptions, visit https://taxservices.lovemycreditunion.org. Void where prohibited.