Filing your taxes can be stressful, as making mistakes during the process can cost you money. For instance, you may miss out on a large refund or owe more taxes, interests, penalties, or even an Internal Revenue Service (IRS) audit. Hence, it is best to prepare well from the beginning and avoid making errors in your returns, especially when you complete the process online. Here are ten tax filing mistakes to avoid.

Not double-checking the basics
Ensure your name, the name of your dependents, and your Social Security number are all entered correctly. And choose the correct filing status, as it can help you save more. For instance, some single people may qualify for favorable tax rates and perks if they meet the requirements for being the head of the household or a qualifying widow/widower with a dependent child.

Not entering information as it has been reported to you (and the IRS)
Wages, dividends, bank interest, and other incomes must be entered correctly and match the figures mentioned on Forms W-2, 1099, and K-1. Since these forms are also reported to the IRS, any mismatch with the government database can lead to trouble. It is a crucial tax filing mistake to avoid.

Not entering items on the correct line
Ensure your entries show up where you intend them to. For instance, do not enter your tax-free IRA rollover in the line meant for taxable IRA distributions. Tax software can help avoid these tax filing mistakes, but double-check these details before submitting the form.

Automatically taking the standard deduction
Automatically relying on the standard deduction could make you lose money. Instead, check for alternatives that give you more significant write-offs and itemize your taxes to save maximum on your tax returns.

Not claiming write-offs you are entitled to
It is a common belief that claiming a home office deduction may lead to a tax audit. As a result, many shy away from the write-off. But this is not true since the IRS has created a simplified way to claim home office expenses, especially now that many people work from home. However, this deduction is only for self-employed individuals. Employees of companies generally cannot claim unreimbursed home office expenses as a miscellaneous itemized deduction under Schedule A.

Not considering your state healthcare individual mandate
The federal Affordable Care Act individual mandate, which required people to pay a penalty fee for every month they (or their families, when applicable) did not qualify for health coverage, was removed in 2019. Still, several states issue their health insurance mandates. As of 2022, around five states have their own health insurance mandates, so learn more about the same before filing your taxes.

Making typos
It is easy to transpose a number or miss certain digits, which can distort your information and prove costly. For instance, if you contributed $5,400 towards your IRA but inadvertently mentioned $4,500 on your return, you just lost a $900 tax deduction! It is one of the simplest tax filing mistakes to avoid.

Making math mistakes
According to the IRS, math mistakes are the most common when filing tax returns. So, always double-check your math or let tax preparation software do the job to avoid errors.

Not telling the IRS how to handle your returns
If you overpaid or are due a refund, it is vital to be proactive and tell the government what you want them to do with your money. If not, the concerned department will send a paper check through the mail. To fast-track this process, add your bank information (account number and routing number); the money will be directly deposited into your account.

Making payment mistakes
When paying taxes, it is essential to ensure your payment is correctly credited to you. One way to do this is to include Form 1040-V with your check when filing electronically or pay via debit or credit card through an IRS-approved payment provider. If you make a mistake on your return, you can amend it using Form 1040-X.

After filing, hold on to your tax returns and supporting documents for at least three years. Keeping your returns and supporting documents for up to seven years may be worthwhile if you file a claim for a loss from worthless securities or bad debt deductions. In case of a fraudulent return, keep the returns and documents on hand indefinitely.