As the deadline for completing taxes looms ever closer, taxpayers across the country are scrambling to gather necessary forms and documents, ensure their numbers are correct and get this burdensome task off their to-do list.
However, according to the tax and financial experts of Kiplinger Advisor Collective, preparing your taxes doesn’t need to be the dreaded task many make it out to be. In fact, it can be a great time to check in on the health of your finances and ensure you’re taking advantage of all the benefits and accounts that are available to you.
If tax time is adding unnecessary stress to your life each year, consider these common mistakes people make when preparing their taxes and what can be done to avoid them. A few simple steps may be all you need to ease your stress and feel good about your finances this year.
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Ignoring beneficial accounts
“A common mistake could be ignoring accounts that offer tax benefits, such as HSAs, FSAs and retirement accounts that depreciate taxable revenue. A lot of people think it is too complicated to use these benefits. The solution is to look over the limits every year and intelligently take advantage of employer-offered benefits to reduce taxes while ensuring greater economic security for the future.” — Jabin Geevarghese George, Tata Consultancy Services Ltd.
Owing unnecessary penalties and interest
“Often, people owe unnecessary penalties and interest due to not doing proactive tax and income planning to determine if withholdings will satisfy their tax liability. Generally, this happens when overall tax withholdings are off, Roth conversions were executed during the tax year or another income source wasn’t accounted for. The fix is to double-check that your paycheck and other withholdings are accurate.” — Doug Oosterhart, LifePoint Planning
Neglecting to track throughout the year
“A common mistake is neglecting to track deductions and credits throughout the year. Many miss out on savings simply because they don’t keep organized records. This happens due to a lack of planning or relying solely on memory. To fix it, keep a digital folder for receipts, use expense-tracking apps and review tax deductions regularly. Staying proactive ensures maximum refunds and fewer surprises.” — Stephen Nalley, Black Briar Advisors
Waiting until the last minute
“I’ve seen people scramble, miss deductions or rush into costly errors. Why? Because taxes feel overwhelming. The fix? Stay organized year-round — track expenses, review with a pro early and treat taxes like a financial checkup, not a deadline. A little prep now saves big headaches later.” — Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
Ignoring deductions and write-offs
“Too many people leave money on the table because they don’t track expenses, or they assume they don’t qualify. If you’re a business owner, freelancer or even have side income, you could be missing major tax breaks. Fix it by keeping detailed records and working with a tax pro who knows how to maximize what you keep. Don’t donate extra cash to the IRS!” — Justin Brock, Bobby Brock Insurance
Putting off getting organized
“The No. 1 mistake I see is a lack of organization and planning throughout the year. Better organization and planning can make tax preparation less challenging because you won’t be as overwhelmed or stressed.” — Marguerita Cheng, Blue Ocean Global Wealth
Failing to seek professional guidance
“Not having a good tax adviser is like sailing without a compass — you might be OK for some time, but eventually you will hit a rock or an iceberg. Tax laws are complex and ever-changing. The consequences of not being compliant can be disastrous. Ensure your tax adviser is sharp and up to date with the latest laws and requirements, or else you might end up paying more in the long run.” — Zain Jaffer, Zain Ventures
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The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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