It's February 2026, and the federal deadline to file your tax year 2025 return is April 15, 2026 (unless you have a disaster extension). More than 90% of returns are now filed online (e-file), and most refunds are issued in less than 21 days when you file electronically with direct deposit, as long as there are no errors. That's why avoiding simple mistakes can make the difference between a fast refund and a headache.

The Most Common Mistakes and How to Avoid Them

Below, we share the most common mistakes and how to avoid them. We use plain language; whenever a technical term comes up, we explain it in parentheses.

• 1) Not claiming valuable credits like the EITC
  • What it is: The EITC (Earned Income Tax Credit) is a refundable credit for workers with low to moderate incomes. “Refundable” means it can put money in your pocket even if you don't owe any tax.
  • Why it matters: About 1 in 5 people who qualify don't claim it, and they lose real money.
  • How to avoid it: Check your eligibility even if you're self-employed, someone in your household has an ITIN, or you changed jobs.
• 2) Misspelling your name or entering the wrong SSN or ITIN
  • Why it matters: Names or numbers that don't match government records lead to rejections and delays.
  • How to avoid it: Make sure your name matches exactly how it appears on your Social Security card and that your ITIN is current.
• 3) Leaving out forms like the 1099-NEC, 1099-K, 1099-INT, 1099-DIV or 1095-A
  • What they are: Forms that report contractor income (1099-NEC), sales processed through platforms (1099-K), interest (1099-INT), dividends (1099-DIV) and Marketplace health insurance (1095-A).
  • Why it matters: The IRS compares what you report with what banks and companies report. If something is missing, you may receive a CP2000 letter with an adjustment and possible charges.
  • How to avoid it: Gather all your forms before you file, and reconcile your 1095-A with Form 8962 if you had Marketplace coverage.
• 4) Choosing the wrong filing status
  • Common options: Single, Married Filing Jointly, Married Filing Separately and Head of Household.
  • Why it matters: It affects your tax, your credits and your standard deduction (the fixed amount that reduces your taxable income).
  • How to avoid it: If you maintained a home for a dependent, check whether you qualify as Head of Household, which usually provides better benefits than Single.
• 5) Not adjusting your withholding or estimated payments if you're a contractor or have a “side hustle”
  • What it is: Withholding is the money your employer takes out of your paycheck. Estimated payments are quarterly advance payments you make if you're self-employed.
  • Why it matters: If you pay too little during the year, you may be charged an underpayment penalty.
  • How to avoid it: Calculate and schedule estimated payments if you receive a 1099-NEC/1099-K or if your withholding fell short.
• 6) Filing on paper when you could e-file with direct deposit
  • Why it matters: E-filing reduces errors and, combined with direct deposit, speeds up your refund.
  • How to avoid it: File electronically and confirm that your bank account is active.
• 7) Not requesting an extension in time (or confusing an extension with more time to pay)
  • Key point: An extension gives you more time to file, not to pay.
  • Why it matters: The penalty for not filing on time is 5% per month (up to 25%). The penalty for not paying is smaller, but interest also builds up.
  • How to avoid it: If you need more time to gather documents, request the extension before April 15 and make an estimated payment.
• 8) Not reconciling the Premium Tax Credit (Marketplace)
  • What it is: If you received help paying for health insurance (an advance credit), you must “reconcile” it on your tax return.
  • Why it matters: If you don't, the IRS may hold your refund or ask you to pay back part of the credit.
  • How to avoid it: Use Form 8962 with the information from your 1095-A.
• 9) Not protecting your return from identity theft
  • What it is: The Identity Protection PIN (IP PIN) is a 6-digit code from the IRS that prevents fraudulent returns from being filed in your name.
  • Why it matters: Fraud delays refunds and complicates your paperwork.
  • How to avoid it: Request your IP PIN for free on the IRS website.

What the Numbers Say (So You Can Take Action Today)

• 9 out of 10 individual tax returns are now filed electronically (e-file), which reduces errors and speeds up refunds.
• Most refunds are issued in less than 21 days when you e-file with direct deposit and the return is correct.
• The penalty for not filing on time is 5% per month (up to 25%) of the unpaid tax; filing even if you can't pay it all lowers your cost.

How Imfinita Tax Team Helps You

• A review of credits like the EITC and Child Tax Credit so you don't leave money on the table.
• Secure electronic filing with direct deposit.
• Support for self-employed workers: expenses, estimated payments and 1099s.
• Help with 1095-A/8962 to avoid health insurance-related delays.
• Guidance on ITINs and correcting errors (amended returns).
• Protection with an IP PIN and anti-fraud measures.

Schedule your free evaluation today and file with confidence before April 15: www.imfinitataxteam.com

References

• IRS Data Book 2023 (share of individual returns that are e-filed): https://www.irs.gov/statistics/soi-tax-stats-irs-data-book
• IRS – Where’s My Refund? (refund timing, most in less than 21 days): https://www.irs.gov/refunds/wheres-my-refund
• IRS – Earned Income Tax Credit (1 in 5 eligible people don't claim the EITC): https://www.irs.gov/individuals/earned-income-tax-credit-awareness-day
• IRS – Penalties (failure-to-file and failure-to-pay penalties): https://www.irs.gov/payments/penalties
• IRS – Common errors to avoid when filing your tax return: https://www.irs.gov/newsroom/common-errors-to-avoid-when-filing-your-tax-return
• IRS – Understanding Your CP2000 Notice (adjustments for unreported income): https://www.irs.gov/individuals/understanding-your-cp2000-notice
• IRS – Premium Tax Credit and reconciling the 1095-A/8962: https://www.irs.gov/affordable-care-act/individuals-and-families/claiming-the-premium-tax-credit-and-reconciling-advance-credit-payments
• IRS – Estimated Taxes: https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
• IRS – Get an Identity Protection PIN (IP PIN): https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
• IRS – Extension of Time to File: https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return

Note: This information is general and may change due to IRS updates or specific situations (for example, disaster extensions). For a personalized analysis of your case, contact us at www.imfinitataxteam.com.