Expert warns of common mistakes made during tax season

PHILADELPHIA (WPVI) -- Ready or not, the tax deadline is Wednesday. You will need to file your income by April 15 or request an extension.

And while a lot of people think about deductions when they're filing their taxes, experts tell us it is also important to remember tax credits, which can save you money.

Unlike deductions, which only reduce your tax liability, credits are a one-to-one dollar reduction of your tax bill.

"These credits can be worth thousands of dollars, such as the earned income tax credit and the child tax credit," said Herb Weisbaum with Consumers' Checkbook.

The maximum child tax credit is up to $2,200 per qualifying dependent child.

And the Earned Income Tax Credit is more than $8,000 if you have three or more qualifying children.

Weisbaum said while filing last-minute, don't rush, that is often when mistakes are made.

"A big mistake a lot of people are making, it looks like at least a million people have made so far, is not telling the IRS an account number to do an electronic deposit for your refund," he said.

If you fail to provide your account info, your refund will be delayed.

The IRS will send you a letter via snail mail.

"They're going to say you have 30 days to send us the right information and set your return aside, and then six weeks later, they'll process the refund," he said.

And beware of scammers!

"It's very easy to know if it's a scam. The IRS does not make initial contact with taxpayers via text, email, phone call, or social media," said Weisbaum. "If they need to contact you, they'll send you a letter the old-fashioned way via snail mail."

There is no free IRS Direct File this year after the Trump Administration got rid of the program, but there are other ways to file for free.

"Some tax preparation programs will help you do this for free, but there are also non-profits who work with people to get this done. They will help low-income Americans, veterans and military families, and seniors, and we have a full list of that on checkbook.org."

Do remember that if you aren't ready to file on Wednesday, you must apply for an automatic six-month extension and pay whatever you can if you owe money.

The interest clock starts on day one, and the penalty for not filing your return or an extension is greater than the penalty for not paying your taxes on time.