Avoid These 5 Costly Tax Mistakes Impacting American Taxpayers
Financial influencer Taylor Price appeared on Varney & Co. to discuss how mindset shifts can help people build wealth.
Her segment came as tax season approaches the April 15, 2025 filing deadline. A new report outlines common errors that cost taxpayers money.
Report highlights common filing errors
A Filmogaz.com analysis identifies five mistakes that can shave thousands from refunds. These are avoidable with better planning and recordkeeping.
Treating taxes as a once‑a‑year task
Christina Taylor, vice president of tax development at April, told Filmogaz.com that viewing taxes only at filing time reduces benefits. She said Americans overpaid roughly $3,200 on average last year and spent 6.5 billion hours on tax preparation.
Failing to track deductions year‑round
Not keeping receipts often means missing deductible items. Track charitable gifts, non‑cash donations, medical costs, and deductible interest throughout the year.
Misreporting investment income and stock compensation
Errors in reporting investment proceeds or stock awards can boost capital gains taxes. Jennifer Kohlbacher, CPA and director of wealth strategy at Mariner Wealth Advisors, told Filmogaz.com many filers miscalculate their tax basis.
Incorrect basis or sale reporting can prompt IRS reviews and delay refunds.
Missing estimated payments or failing to update withholding
Self‑employed taxpayers and small businesses generally must make quarterly estimated tax payments. Skipping payments may trigger penalties and interest on underpaid amounts.
Life events like marriage or a new child should prompt withholding updates to avoid surprises and reduce refund volatility.
Filing mistakes and poor recordkeeping
Simple math errors and typographical mistakes can cause the IRS to flag returns for review. Such reviews often delay refunds and can lead to audits.
To avoid costly tax mistakes, maintain records year‑round and confirm investment bases before filing. American taxpayers should review withholding after major life changes and consult a tax professional for complex situations.
