HOW TO COMPARE CREDIT BUILDER APPS IN 2024

Your Guide to Smarter Filing and Tax Relief in 2025

Tax season can feel overwhelming — but avoiding a few common mistakes could make a huge difference in your refund, reduce your risk of penalties, and even open the door to real tax relief. 

Whether you're self-employed, working under an employer, or juggling multiple income streams, here are the most frequent filing mistakes people make — and the tax solutions you need to avoid them.

1. Not Filing Your Income Tax Return (Even When You Think You Don’t Have To)

a. I didn’t earn any income last year.
Even if you had no income, ignoring a notice from the IRS or your state’s tax agency to file a return is a big mistake.
✔️ Tax Solution: Always respond to filing requests. You may still need to file a return to avoid penalties or verify your situation officially — especially if you want to claim refunds or future relief.

b.My employer is in the Auto-Inclusion Scheme.
Yes, some employers automatically report your income. But that doesn’t always exempt you from filing.
✔️ Tax Relief Tip: Double-check if you received a filing notice. Filing, even when not strictly required, helps ensure your tax profile remains clean and accurate.

2. Wrong Declaration of Trade or Business Income

Many taxpayers, especially freelancers and gig workers, misreport income by categorizing it as “employment” instead of “business” income.
🚫 If you're a private tutor, real estate agent, rideshare driver, or a hawker, your income likely counts as self-employment.
✔️ Tax Solution: Report this income under the correct category. Self-employment income often qualifies for different deductions and tax relief options.

3. Incorrect Relief Claims

A common myth is: “I claimed reliefs last year, so I don’t have to do anything this year.”
🚫 False. Most tax reliefs are not automatically carried forward.
✔️ Tax Solution: You must reapply or re-claim most reliefs annually — including spouse relief, child relief, or parent relief. Missing this step could mean losing hundreds or thousands of dollars in eligible deductions.

4. Wrongful Claim for CPF Contributions (Self-Employed Individuals)

If you’re self-employed and contributed to your Central Provident Fund (CPF), it’s important to accurately declare this in your tax return.
🚫 Failing to do so could disqualify you from claiming CPF contribution relief.
✔️ Tax Relief Tip: Always report your actual CPF contributions on Form B. This ensures you're eligible for voluntary contribution deductions, which lower your taxable income.

5. Submitting Unnecessary Documents

You might think submitting more documents helps prove your claims — but that’s not always the case.
Example: If you declare rental income and claim actual expenses, you might be tempted to upload receipts or invoices automatically.
🚫 This can delay your filing or even trigger unnecessary scrutiny.
✔️ Tax Solution: Only submit documents when the tax agency specifically asks. Keep all records organized and ready, but don’t overwhelm the system with extras unless required.

6. Misclassifying Your Income

If you're a commission agent, private tutor, or rideshare driver, you may be tempted to list your earnings under "Employment" or "Other Income" instead of self-employed business income.
🚫 This can lead to incorrect tax calculations or missed reliefs.
✔️ Tax Solution: Declare your earnings under the correct category — usually “Trade, Business, Profession or Vocation.” This opens access to business deductions, expense claims, and relevant tax relief benefits.

Final Thought: Small Mistakes Can Lead to Big Problems

Whether you’re working a traditional job, freelancing, or running your own side hustle, tax filing mistakes can cost you — in penalties, lost deductions, or even legal trouble. The good news? There are real tax solutions available, and Resoly is here to help.

‍