💸 The Top 5 Mistakes Families Make on Their Taxes

(and How to Avoid Turning Tax Season into a Family Soap Opera)

Ah, tax season — that magical time of year when families across America gather around the kitchen table, armed with laptops, coffee, and misplaced W-2s. Every parent suddenly becomes a mathematician, every teenager becomes “too busy,” and somehow nobody remembers who last claimed Grandma as a dependent.

If that sounds familiar, you’re not alone. The IRS might not find it funny, but the truth is: tax season is full of avoidable mistakes. And those mistakes don’t just cost money — they cost peace of mind.

So before you hit Submit on your tax return and hope for the best, let’s take a humorous but honest look at the Top 5 Mistakes Families Make on Their Taxes — and how to avoid them like pros.

🧒 Mistake #1: Claiming (or Forgetting) Dependents

Every year, millions of families mix up who counts as a dependent. Maybe your cousin lived with you “for a little while,” or your 22-year-old college student insists they’re independent now because they pay for their own Netflix.

Here’s the deal:

• You can claim a child if they live with you more than half the year, you provide more than half their financial support, and no one else is already claiming them.

• You can’t claim your pet, 🐕‍🦺 no matter how cute your dog’s little sweater is.

• And if your kid is in college, you might still be eligible to claim them — even if they live on campus and only come home when they need laundry money.

The easiest way to remember: if they still eat your groceries, you probably qualify.

Pro Tip: Double-check Social Security numbers. One typo and suddenly your daughter turns into a stranger in the IRS database.

💰 Mistake #2: Missing Out on Credits That Could Save You Thousands

Tax credits are the government’s way of saying, “Hey, raising a family in 2025 isn’t cheap.” And yet, so many people skip them because they don’t realize they qualify.

Here are a few big ones you don’t want to miss:

• Child Tax Credit: Worth up to $2,000 per qualifying child under 17. That’s not pocket change — that’s braces, gas money, or three weeks of grocery bills.

• Earned Income Tax Credit (EITC): Designed for working families with low to moderate income. It can put hundreds — sometimes thousands — back in your pocket.

• Child and Dependent Care Credit: Paying for daycare, after-school programs, or summer camp so you can work? This one’s for you.

• Education Credits: If you’ve got a college student eating ramen in a dorm room, you might qualify for the American Opportunity or Lifetime Learning credits.

It’s like finding coupons for life’s biggest expenses — except this time the store is Uncle Sam.

Pro Tip: If you’re not sure what credits apply, use reputable tax software or talk to a professional. Don’t leave free money on the table because you assumed you didn’t qualify.

🧾 Mistake #3: Mixing Business and Personal (a.k.a. the “It’s for My Side Hustle” Excuse) 🚖

Welcome to the new American Dream — everyone’s got a side hustle. Whether you drive Uber, sell candles online, or run a mini-empire on Etsy, you’ve technically got a business. The mistake? Mixing your personal finances with your business ones.

You can’t claim your Target run for “office supplies” if you also bought socks, snacks, and a scented candle “for the vibe.” The IRS may not appreciate your entrepreneurial spirit that much.

The fix is simple:

• Open a separate business bank account.

• Keep receipts and track mileage.

• Use an expense-tracking app — not a pile of crumpled receipts in your glove compartment.

• Report all your income, even if it’s cash from Venmo.

If you ever get audited, having clean records can be the difference between a quick review and a very long, uncomfortable conversation.

Pro Tip: Think of your side hustle like a tiny corporation. Treat it with respect, and it’ll treat you (and your tax refund) better.

⏰ Mistake #4: Filing Late or Forgetting to File at All

You know who doesn’t appreciate procrastination? The IRS. Every April, there’s a rush of Americans frantically searching for W-2s like it’s a nationwide scavenger hunt.

Here’s what happens if you file late:

• You could get hit with penalties and interest, which can snowball faster than your student loans.

• You could delay your refund (ouch).

• And in extreme cases, the IRS might file a substitute return for you — and trust me, they won’t include any deductions you forgot.

If you truly can’t file on time, request an extension — it gives you until October to file your paperwork. But don’t get too relaxed: that’s an extension to file, not to pay. The money still needs to be sent by April.

Pro Tip: Set a recurring reminder in your phone for early March. “Do taxes” should rank right up there with “Pay bills” and “Hide snacks from kids.”

🧮 Mistake #5: DIYing When You Should Really Call for Backup

We Americans love our independence. We’ll assemble IKEA furniture without instructions, fix leaky faucets with duct tape, and attempt to “do our own taxes” because, hey, how hard can it be?

But here’s the truth: the tax code is about 7,000 pages long, and it changes often. Even if you’re smart and organized, one small error can cost hundreds — or even trigger an audit.

There’s no shame in getting help. A qualified tax professional can:

• Spot deductions and credits you didn’t know existed.

• Help you plan for next year.

• Keep your family out of trouble if you receive one of those dreaded “IRS letters.”

Think of a tax professional as your financial GPS — they help you avoid dead ends and detours. Sure, you can drive blindfolded, but wouldn’t it be better (and safer) to follow directions?

Pro Tip: A good preparer doesn’t just “do taxes” — they build a long-term plan to help you pay less next year, too.

👨‍👩‍👧‍👦 Bonus Mistake: Turning Tax Season into a Family Feud

If you want to see chaos, ask a family who gets to claim the kid who splits time between two parents, or who bought that shared laptop “for school.” Tensions rise, voices raise, and suddenly everyone’s an expert.

Here’s how to keep the peace:

• Communicate early — don’t wait until April 14th to figure out who’s claiming who.

• Keep shared expenses documented.

• And remember, being kind (and organized) is worth more than any refund.

After all, no one wants to spend spring explaining their family drama to an IRS agent.

✅ The Bottom Line

Tax season doesn’t have to feel like a sitcom gone wrong. With a little preparation, a sense of humor, and maybe some professional guidance, you can glide through it with your sanity — and your refund — intact.

Here’s the quick recap:

1. Claim the right dependents (sorry, Fido).

2. Don’t leave money on the table — get those credits!

3. Keep business and personal separate.

4. File on time — or at least file an extension.

5. Know when to call a pro.

Taxes might not be fun, but the refund check sure is. And if all else fails, remember: laughter is tax-free.

✍️ About Progressive Tax Services

At Progressive Tax Services, we make taxes less stressful and a lot more human. Whether you’re filing as an individual, a growing family, or a self-employed superhero juggling receipts and toddlers, our team is here to help you file confidently and maximize your refund — without the headaches.

📞 Call us today to schedule your free consultation, or visit progressivetaxus.com

to learn how we can help make this tax season your easiest one yet.