Overview
- A GOBankingRates report highlighted five routine errors that can cost taxpayers thousands of dollars each year as the April 15 filing cutoff approaches.
- Treating taxes as a once-a-year task leads many filers to miss credits, with one expert estimating Americans overpaid about $3,200 on average last year.
- Failing to track deductible costs throughout the year causes missed write-offs, including charitable gifts, medical bills, and interest that some states allow.
- Reporting investment income or stock compensation with a wrong cost basis often inflates capital gains taxes, especially with restricted stock or stock options.
- Skipping quarterly estimated payments or not updating paycheck withholding after life changes can trigger IRS penalties, interest, or smaller expected refunds.