Avoid These Common Tax Filing Mistakes in Everett, WA

(Most People Miss #4!)

 

What are the most common tax filing mistakes Everett residents should avoid?

Missing deadlines, underreporting income, and overlooking deductions are the top tax mistakes that lead to IRS issues and lost refunds. At Community Tax Services, we help individuals and businesses in Everett avoid these slip-ups with expert tax preparation that catches what software often misses.

 

Mistake #1: Missing the Filing Deadline

Missing the April 15 deadline can lead to penalties, interest, and delayed refunds—even if you don’t owe taxes.

You might think filing late isn’t a big deal—especially if you expect a refund. But that’s not true. The IRS can still charge a failure-to-file penalty of 5% per month (up to 25%) if you miss the deadline without an extension.

For example, one Everett resident delayed filing due to a busy schedule. By the time they filed, their $2,200 refund had shrunk due to penalty offsets from an older, unnoticed IRS debt.

We encourage all our clients to plan early. Our team at Community Tax Services accepts early appointments as soon as W-2s and 1099s arrive in January.

 

Mistake #2: Underreporting Income (Especially Side Hustles)

Failing to report freelance, gig, or digital income can trigger an IRS audit or penalty—even if it’s just a few hundred dollars.

Apps like Uber, Etsy, and DoorDash report your earnings to the IRS via Form 1099-K or 1099-NEC, even if you don’t receive a form yourself.

One client in Everett, a part-time Etsy seller, forgot to report $4,700 in income. They were shocked when they got an IRS CP2000 letter with a $650 tax bill plus interest.

We double-check all expected income sources with each client and use legal strategies to reduce their tax liability. Need help tracking gig income? Book a consult with Alex today at info@everetttax.com.

 

Mistake #3: Not Claiming All Eligible Deductions or Credits

Taxpayers leave an average of $893 on the table by skipping deductions they’re eligible for, according to CNBC.

From student loan interest to home office write-offs, many deductions go unnoticed in DIY tax software. One Everett childcare worker missed out on the Earned Income Tax Credit (EITC) three years in a row—until she walked into our office.

At Community Tax Services, we ask the right questions and know where to look. Our personalized reviews make sure no refund gets left behind.

 

Mistake #4: Filing With the Wrong Filing Status

Choosing the wrong filing status—like “single” instead of “head of household”—can reduce your refund or increase your tax bill.

This is surprisingly common. If you’re a single parent with dependents, you may qualify for Head of Household, which offers lower tax rates and a higher standard deduction than filing as “Single.”

We had one Everett mom gain an additional $1,300 refund after switching to the correct filing status with Alex’s help.

This is why we recommend skipping automated apps and working with a local Everett tax filing professional who understands the ins and outs of status eligibility.

 

Mistake #5: Not Keeping Tax Documents Organized

Poor recordkeeping leads to missed deductions, inaccurate filings, and IRS delays if you’re audited.

Receipts, mileage logs, medical bills, charitable donations – these all matter. One business owner in Everett lost over $5,000 in deductions because their software couldn’t verify the numbers without documentation.

We help our clients create digital folders and checklists for year-round tax prep. When tax season hits, they’re ready – and so are we.

If you’re worried about paperwork, just stop by our office at 1000 SE Everett Mall Way, Suite 206 for a free tax checklist.

 

Why Choose Alex at Community Tax Services?

Alex Caceres is a licensed tax lawyer with two decades of experience helping Everett locals avoid tax penalties and maximize refunds.

He doesn’t just run numbers – he analyzes your situation, answers IRS letters, and gives you advice backed by law. His team is bilingual (English & Spanish) and available year-round, not just in April.

Visit our Everett tax services page to see how we support individuals, freelancers, and business owners across Snohomish County.

You can also call 425-512-9555 or email info@everetttax.com anytime for tax help.

 

FAQs About Common Tax Mistakes in Everett

Q1: What happens if I forget to file a 1099?
A: The IRS may flag your return for underreporting. We can help amend it or respond to CP2000 notices if needed.

Q2: How long should I keep my tax documents?
A: The IRS recommends three years, but up to seven for certain situations like claim of loss or bad debt.

Q3: Can I still claim credits for past years?
A: Yes, usually up to three years back. We’ve helped many Everett clients file amended returns and recover missed refunds.

Q4: What if I already filed but realized I made a mistake?
A: We can file a 1040-X amendment to correct any errors, ensuring compliance and accuracy.

Q5: Can I fix mistakes made by DIY software?
A: Absolutely. We routinely fix errors from platforms like TurboTax and Credit Karma Tax.

 

Final Thought: A Small Mistake Can Cost You Big

Most people don’t realize they’ve made a mistake until they’re staring at an IRS letter or a smaller refund than expected. But with professional support from Community Tax Services, these issues become rare – or disappear altogether.

Avoid the stress. Maximize your refund. And feel confident in your return.

Call us at 425-512-9555
Email info@everetttax.com
Visit us at 1000 SE Everett Mall Way, Suite 206, Everett, WA 98208

For the most accurate, error-free filing experience, trust your local tax team at Community Tax Services in Everett, WA.