With the COVID-19 pandemic shaking up nearly every aspect of life in 2020 and into 2021, the Internal Revenue Service has opted to push back the federal tax filing deadline. Instead of April 15, federal taxes should now be completed by May 17.
Despite the extra month to complete the federal tax returns, people might still make some common mistakes that could cause their filings to be audited. The IRS audits around 300,000 filings each year, but double-checking your filing and avoiding some simple mistakes could help ensure that your return does not land on the dreaded audit list.
To determine the most common tax mistakes, 24/7 Wall St. reviewed several of the IRS’s annual lists of common errors made on tax returns.
Nearly 73% of all taxes in 2019 were filed electronically, including more than 89% of all individual returns. Filing electronically is a good way to avoid many of the most common errors, which include misspellings, unsigned forms, and incorrectly calculated figures. However, some transcription errors can be made even more easily by accidentally typing in the wrong number.
With the federal government extending the tax filing deadline, most states chose to do the same. Many states pushed their filing dates to May 17, like the federal government, though a handful pushed it into the summer. These are the states where you’ll pay the most in taxes.