Top Tax Mistakes to Avoid in 2025
Filing your taxes isn’t just about getting it done—it’s about getting it done right. One wrong move can cost you money, delay your refund, or worse… trigger an IRS letter you weren’t expecting.
In 2025, with new tax law changes and expanded deductions, it’s more important than ever to steer clear of common mistakes. Here are the top tax mistakes to avoid this year—and how to keep more money in your pocket.
Forgetting New 2025 Tax Law Changes
From the Enhanced Child Tax Credit to new overtime & tip exemptions, 2025 introduced major updates under the One Big Beautiful Bill Act. Forgetting to apply these benefits means leaving money on the table.
>> Always double-check what’s new on IRS.gov or work with a pro who tracks the changes for you.
Not Reporting All Income
The IRS matches records from W-2s, 1099s, and even payment apps like Venmo or Cash App. Forgetting a form—even for a small side hustle—can trigger a mismatch and a notice.
>> Rule of thumb: If money came in, assume the IRS knows about it.
Missing Out on Deductions & Credits
Too many taxpayers default to the standard deduction and skip further review. Business owners and self-employed workers especially miss deductions like:
Mileage & home office
Retirement contributions
Business startup costs
Dependent care and education credits
>> A quick tax strategy session could uncover thousands in missed savings.
Filing Late or Forgetting Estimated Taxes
Individuals: Filing late = 5% penalty per month (up to 25%).
Business owners & freelancers: Missing quarterly estimates means IRS penalties + state penalties (like in Ohio).
>> Even if you can’t pay, file on time to cut penalties in half.
Not Keeping Proper Records
The IRS requires proof for deductions and credits. A shoebox of receipts or vague bank statements won’t cut it if you’re audited.
>> Keep mileage logs, expense trackers, and receipts organized throughout the year.
DIY Without Knowing the Rules
Tax software is great for filing—but it won’t tell you what strategy to use. It can’t ask:
Should you switch to an S-Corp?
Are you maximizing retirement deductions?
Is your side hustle set up properly for write-offs?
>> This is where a tax pro turns “filing” into strategy.
Mistakes don’t just happen—they happen when you rush, guess, or try to “wing it” with the IRS. In 2025, don’t let errors drain your refund or cause headaches.
Ready for a smooth, mistake-free tax season with maximum savings? Join the 2025 Tax Season Waitlist today: tbtxsolutions.com/join
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1. What’s the #1 mistake taxpayers make?
Not reporting all income (especially from 1099s or payment apps).2. How do I avoid missing deductions?
Keep organized records and work with a tax strategist instead of relying only on DIY software.3. What happens if I file late but owe nothing?
No penalty for taxes owed = $0. But refunds can be delayed or forfeited after 3 years.4. Do self-employed workers really need to pay quarterly taxes?
Yes—if you’ll owe $1,000+ at filing. Skipping them creates penalties and cash-flow problems.5. How can I stay audit-ready?
Track expenses with logs, receipts, and a Profit & Loss statement. The more organized you are, the less stress if IRS comes knocking.
