When it comes to tax preparation, ensuring accuracy and compliance with the IRS rules is paramount. One common mistake is inaccurately reporting income. It is crucial to report all income sources, including freelancing or contract work that might not always provide formal tax documents like a W-2 or 1099 form.

Another significant error involves deductions and credits. Many taxpayers either claim deductions and credits they are not eligible for, due to misunderstandings of tax laws, or fail to claim deductions they are entitled to, thus paying more tax than necessary. It’s important to understand what deductions and credits you are eligible for and maintain accurate records throughout the year.

Incorrectly filing status is another area where people often err. Whether you should file as single, married filing jointly, head of household, etc., depends on specific criteria related to your personal situation on the last day of the tax year. Misunderstanding these criteria can lead to the wrong filing status and potentially higher tax liabilities or missed benefits.

Lastly, failing to file or pay taxes on time can result from poor planning or understanding of deadlines. This can lead to penalties and interest charges that increase the total tax liability. Using electronic filing and payments can help mitigate these issues, ensuring that all filings are timely and accurate.