At the end of fiscal year 2024, the National Taxpayer Advocate report noted, some 739,000 taxpayers were still waiting for the IRS to unfreeze their federal income tax refund after they claimed potential frivolous credits.
What mistakes should you try to avoid?
Rushing to do your taxes isn’t a smart strategy.
Tax filers must make sure to have all tax documents in hand before filing a return.
“If not, they risk receiving a letter from the IRS for not properly reporting their income,” said Hetherwick, of the Accounting Aid Society.
What are some common things that you might forget? Maybe it’s taxable lottery winnings, casino winnings in person or online. Or maybe you forgot some activity on stock trading apps, like Robinhood, Webull and Charles Schwab.
“More common situations are tax filers that have had multiple jobs in the prior year. We need to make sure they have everything from each employer,” Hetherwick said.
Do you have all of your W-2 forms for 2024? From all of your employers during the year? Did you receive any money or any sort of distribution from a retirement account? Say maybe when you switched jobs?
Some online tax programs can help find that data. TurboTax, for example, notes that it partners with hundreds of payroll providers and financial institutions to enable tax filers to automatically import W-2 and 1099 information directly into a return.
Lisa Greene-Lewis, a TurboTax tax expert, said taxpayers should make sure they gather the correct Social Security numbers for dependents. “Dependents are worth valuable deductions and credits but you need the correct Social Security number to claim them,” she said.
For many families, especially those receiving the earned income tax credit, a tax refund check is often biggest check that the household will see all year.
The average federal income tax refund in 2024 was $3,138 based on IRS data through Dec. 27, down 0.9% from the same period in 2023.
Given the size of many refunds, Greene-Lewis said, it’s better to go online, e-file a tax return, and opt for direct deposit to receive that money more quickly.
Tax refund checks do get stolen in the mail, and opting for direct deposit can avoid that risk.
The IRS data indicates that nearly 10 million paper refund checks went out in 2024 — or 9.4% of all refunds issued.
Leix, at the Michigan Treasury, notes that taxpayers who submit a paper return should take extra care and time to follow the instructions carefully.
“When taxpayer rush to paper file, arithmetic mistakes can occur. This delays processing and refunds,” Leix said.
What can you do if you cannot find a 2023 return?
Ask your tax preparer, if you had one last year, for a copy of the 2023 return.
Or request a tax return transcript from the IRS by using Form 4506-T to get your hands on key personal information. For fast help, go online to www.irs.gov and click on “Get Your Tax Record.”
If you end up requesting a transcript by mail, it’s going to take time to get it, maybe five to 10 days. And it’s going to be sent to the address that the IRS has on file for you.
The transcript won’t look exactly like a tax return, but it will do the job.
A tax return transcript will show most line items, including adjusted gross income or AGI from your original Form 1040, along with any forms and schedules. It helps to have the 2023 information when filing a 2024 return.
How do you get your taxes done for free?
Many low-income to moderate-income people also qualify for free tax preparation assistance through AARP Foundation Tax-Aide.
In 2025, people who generally make $67,000 or less qualify for these services through the IRS’s Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.
Many more people can use “Free File” at IRS.gov if they’re comfortable using tax software. The IRS Free File’s online guided tax software products are available to taxpayers with an adjusted gross income of $84,000 or less in 2024.
Contact personal finance columnist Susan Tompor: stompor@freepress.com . Follow he r on X @tompor.