Tax season is upon us: Here’s how to avoid the most common costly mistakes
Tax season is here.
The official window to begin filing taxes opened Monday, Jan. 23, according to the Internal Revenue Service. Taxpayers now have until April 18 to file their taxes.
Here’s what you need to know about filing taxes this year, including the biggest taxpayer mistakes — and how to avoid them.
2022 tax season timeline
The 2022 tax season will last from Monday, Jan. 23 until Tuesday, April 18.
January 13: IRS Free File system opens.
January 23: IRS officially starts accepting and processing individual 2022 tax returns.
April 18: The national due date to file a 2022 tax return or request an extension.
October 16: The deadline to file a tax return for those who request an extension.
Six tax season mistakes — and how to avoid them
Filing your return on paper: Taxpayers can opt to file their tax returns by hand, mailing their paperwork to the IRS. But doing so can lead to delays or even penalties if the paperwork gets lost or damaged. Experts say the easiest and quickest way to make sure your tax return is processed correctly is to file electronically and opt for your refund to be directly deposited into your bank account. The IRS offers its own free filing system for taxpayers who make $73,000 or less in 2022. You can access Free File here.
Filing your return too early: Diligent, eager taxpayers often opt to file their taxes as soon as possible. While this can be beneficial, experts advise taxpayers to take your time, ensuring you have all of your paperwork filled out and all your signatures, even if that means you get your refund a little later.
Math mistakes: The IRS issued more than 12 million math correction notices during the 2021 tax year, according to its data. Online software can catch this type of errors, which experts say is another reason taxpayers should file electronically instead of by mail.
Using the wrong filing status: Picking the wrong filing status — be that single, married, head of household etc. — could mean you miss out on a higher tax refund. Before filing your return, you can use the IRS’ “What Is My Filing Status?” tool to make sure your status is accurate. To use the tool, you’ll need your marital status and/or your spouse’s year of death as well as the percentage of costs that the people living in your household paid toward the home. The survey takes about five minutes, according to the IRS. You can access the tool here.
Mistyping a number: Experts warn taxpayers to check, double check and then triple check their tax filing forms to ensure accuracy. Just one wrong number in your Social Security number or bank account number could delay your tax refund, causing a greater headache for you. The easiest way to do this is to file online and take your time.
Not filing your tax return because of financial concerns: In 2020, 32 million households did not file a tax return, according to the Tax Foundation. If you choose not to file a tax return though, you might face even greater expenses after paying the associated penalties. Even if you are unable to pay, it’s better to at least file your paperwork, Bill Smith, national director of tax technical services at accounting firm CBIZ, told CNBC in 2022. The IRS offers several options for taxpayers who can’t afford their tax bills.
When to expect your 2022 tax return
The IRS estimates that most refunds will be issued in 21 days or less from when you file, but there are some caveats.
Any taxpayer filing a return that includes a Earned Income Tax Credit or Additional Child Tax Credit may have to wait a bit longer, depending on when they file their return. The IRS said it is unable to issue these returns until mid-February, so early filers should start to see those returns in their accounts around February 28.
Once you file your tax return, you can check the IRS’ “Where’s My Refund” system to track your refund starting 24 hours after you file. To track your refund visit https://www.irs.gov/refunds.
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