I’m a Tax Preparer: No. 1 Filing Mistake I See That Wipes Out Refunds

Core Insights - The average tax refund for American taxpayers in 2025 was $3,052, with an expected increase of 15% to 20% in 2026 [1][2] Group 1: Tax Filing Season - The IRS opened the tax filing season on January 26 [1] - Taxpayers are advised to avoid filing too early to prevent potential delays in receiving refunds [3][4] Group 2: Common Mistakes - A common mistake is filing taxes before all necessary documents, such as W-2s and 1099-INTs, have been received [3] - Rushing to file can lead to delays in refunds, which may negatively impact financial situations, especially in 2026 due to IRS processing backlogs [4] Group 3: Consequences of Mistakes - Delayed refunds can force individuals to rely on credit cards or short-term loans, worsening their financial conditions [4] - In severe cases, filing errors can trigger IRS adjustments, resulting in unexpected tax liabilities [5] Group 4: Avoiding Mistakes - Taxpayers should compare their current year's documents with the previous year's filings to ensure all necessary information is included before submitting [6] - It is recommended to wait for all documents to arrive to avoid delays, and taxpayers can check their investment accounts for available tax documents [6]