As the tax filing deadline of April 15 approaches, the Internal Revenue Service (IRS) is cautioning taxpayers to steer clear of certain errors that could result in delays in receiving their tax refunds. According to the IRS, there are eight common mistakes to watch out for when filing your taxes this year. By using electronic filing methods such as IRS Free File or alternative e-file service providers, taxpayers can not only avoid simple math errors but also potentially uncover tax credits or deductions.
Furthermore, taxpayers should pay attention to specific details such as accurately inputting names, birthdates, and Social Security numbers to prevent processing delays. In cases where dependents or spouses lack Social Security numbers, an Individual Tax Identification Number (ITIN) should be provided instead. Additionally, all taxpayers must disclose information related to digital assets, including cryptocurrencies, regardless of whether they engaged in transactions involving these assets in 2023. Failing to report income accurately may lead to accrued interest and penalties, so it is crucial to include all sources of income such as interest earnings, unemployment benefits, tips, and freelance or gig economy earnings in your tax return.