Bill Sweeney, AARP’s senior vice president of government affairs, says the “bonus” deduction could put hundreds of dollars back in the pockets of seniors this tax season.
Tax season is stressful enough, but avoidable mistakes can make routine filing an expensive headache.
As Tax Day approaches, here are five common filing steps that could mean a small refund, a large charge or a delay in processing your return.
1. Choosing the wrong filing status
If you’re in doubt about your filing status, the IRS has a tool to help you choose the correct one for your tax return. (Stock)
Your filing status is one of the most important decisions on your tax return because it helps determine your tax rate, your standard deduction and the credits you may be eligible to claim. Choose the wrong one, and you could end up paying more than you owe, getting a smaller refund or risking a delay if the IRS flags a revised refund.
For many taxpayers, the confusion comes from life changes that occur during the year, such as getting married or divorced, having a child, moving in with a partner, supporting an elderly parent or sharing custody. Even if your situation sounds straightforward, the IRS rules can be complicated, especially for taxpayers who aren’t sure if they qualify as “head of household” or if they can still file as a “qualifying surviving spouse” after the death of a spouse.
The head of the household, in particular, can be costly to get wrong. It usually comes with a larger standard deduction and more favorable tax brackets than filing as a single person — but it has stricter requirements that include paying more than half the cost of maintaining a home and having a qualifying dependent. If you don’t meet the rules and claim it anyway, you may have to pay back the tax benefits later, along with penalties and interest.
If in doubt, the IRS has an online filing status tool, and most tax software programs will walk you through questions to help you choose the right category.
2. Leaving credits on the table
One of the biggest and most expensive mistakes at tax season is failing to claim every credit or deduction you’re entitled to. That could mean a smaller return or a higher bid.
“I think the biggest mistake people make is they don’t fully understand or take the time to really research what the different deductions are and the ways you can put a little more money in your pocket that you can get,” said Bill Sweeney, senior vice president of government affairs at AARP.
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Sweeney also cautioned taxpayers not to rely on last year’s return as a blueprint for filing due to recent changes to the tax code from the One Big Beautiful Bill Act.
“This could be a good year since there are these changes in the tax code, to make sure you don’t think that what you did last year will carry over to this year. Take a closer look at your tax situation and see if there is any money you are leaving on the table,” he said.
3. Missing important deadlines
If you file an extension with the IRS, you still owe money on April 15th. (J. David Ake/Getty Images)
An extension can buy you time to file your paperwork, but it doesn’t give you more time to pay. For most taxpayers, the IRS deadline for paying what you owe is April 15, 2026 — even if you ask for an extension to file later.
“Remember that even if you want to extend the money, the money is credited on April 15,” said Mike Faulkender, chairman of American Prosperity at the America First Policy Institute.
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Faulkender, a former Treasury official and IRS commissioner, said taxpayers who need more time should still estimate their debts and pay on time to help avoid additional costs.
“You have to send a check or make a payment on your account at the last minute,” he said.
If you can’t pay in full by April 15, pay what you can to reduce penalties and interest on your tax bill.
4. Entering incorrect bank account information
If you choose direct deposit to receive your refund, the IRS relies on the routing and account numbers you provide. One wrong digit can lead to delays.
If you pay what you owe by direct debit, incorrect bank details can also lead to a declined payment and potentially incur penalties and interest.
5. Filing before all your tax forms arrive
Submitting your tax returns and missing documents can lead to errors, corrections and fees. (Michael Bocchieri/Getty Images)
Time is of the essence when it comes to filing your taxes. Submitting your return before you receive all of your important paperwork, such as W-2s or 1099s, can lead to errors, missing income or a return that you have to amend later.
Faulkender said there’s an easy way to double-check what’s reported under your name before you file.
“One of the things I learned last year when I was an IRS commissioner, is that if you create an account on irs.gov, you can see everything filed under your tax ID,” he said.
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“We should be getting all of our W-2s and our 1099s in the mail in January and February. But if you’re missing one, or you’ve dropped it at the request center again, you can actually go and see what’s entered under your taxpayer identification number when you create an account on IRS.gov.”
Applying late can cost you more money, especially if you owe money. The goal is to wait until you find what you need, then file as soon as you’re ready.
