I Asked ChatGPT for the Tax Mistakes Self-Filers Make Most Often — and How To Avoid Them
Written by
Crystal Mayer
Edited by
Rebekah Evans
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The federal tax deadline is rapidly approaching and for many people, that means a mad scramble to get taxes signed, sealed and delivered to the IRS. A complicated tax system can make even the most savvy self-preparer a little nervous.
To ensure my taxes are error-free, I asked ChatGPT for the tax mistakes self-filers make most often and how I could avoid them — here’s what it said.
Also ChatGPT weighed in on whether filing a tax extension is a bad idea.
Missing Income
According to the artificial intelligence (AI) chatbot, most mistakes that self-filers make aren’t overly complicated; they are just “small oversights,” but they can lead to lengthy delays. One of the most common is simply not reporting all of the income, either by forgetting a 1099 from a side gig or missing a bank interest form. To avoid this, the AI-assistant recommended waiting until mid-February to file to ensure that all documents have arrived and reviewing the previous year’s forms to make sure that the same have been reported.
Choosing the Wrong Status
Another common error when self-filing, according to ChatGPT, is choosing the wrong status, such as filing as “Single,” even though you qualify as “Head of Household.” The chatbot suggested several ways to avoid this mistake, including reviewing IRS rules about each status to ensure correct filing and coordinating with an ex-spouse for dependent claims.
The IRS also offers guidance on common mistakes people make when filing their returns, including choosing the wrong status. If a filer is unsure about what their status is, the IRS offers a 5-minute questionnaire to help ensure the correct one is marked.
Missing Credits and Incorrect Deductions
Sometimes self-filers end up paying more than they should by missing tax credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit, Child and Dependent Care Credit and Education credits. To avoid this, read each credit section carefully and answer eligibility questions thoroughly, ChatGPT explained.
On the other hand, some self-filers take too many or too few deductions, such as overstating business expenses or forgetting to track mileage. The chatbot recommended keeping separate business bank accounts as one way to avoid this common mistake.
Math Errors
What may surprise some self-filers is how common simple math errors are. ChatGPT noted that these are less common with software but still happen. The experts at Intuit Turbo Tax also list math errors as an easy mistake filers make, noting that the IRS found 2.5 million math errors in a single year. To avoid these, double-check all information prior to filing and compare totals to last year, said the AI chatbot.
These are just a few of the errors that self-filers make when filing their taxes. One of the easiest ways to avoid these common mistakes is by consulting with a tax expert before filing.
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