Introduction
The IRS processes over 150 million tax returns each year, and millions of them contain errors that cost taxpayers hundreds—or even thousands—of dollars. At Union National Tax, we have seen the same mistakes repeat year after year. Do not let these common errors reduce your refund or increase your tax bill.
Mistake #1: Not Reporting All Income
The Problem: Many taxpayers fail to report all their income, especially from side hustles, freelance work, or interest earnings. The IRS receives copies of all W-2s and 1099s, so they already know about your income.
The Cost: Penalties, interest, and potentially back taxes—even if you legitimately forgot.
How to Avoid: Keep records of all income sources. Report even small amounts from freelance work. Check all 1099 forms against your records. Include interest and dividend income.
Mistake #2: Claiming the Wrong Filing Status
The Problem: Filing status affects your tax rate, standard deduction, and eligibility for credits. Many people choose the wrong status out of confusion.
The Cost: Incorrect credits, wrong tax brackets, potential audit triggers.
