I often hear mistakes with these three verbs.

Problem:
These verbs have basic forms that intersect one another.

Explanation:
The three verbs of interest in this blog post are “lie”, as in to make a false statement, “lie”, as in to recline, and “lay”, as in to put in a horizontal position.

It is a common English blunder — at least in American English — to use a basic form for one of these verbs as if it were a basic form for another of these verbs.

The false-statement-related verb “lie” has these basic forms:

• Lie — present simple, as in “When you lie, you hurt others.”
• Lied — preterite, as in “He lied about his income.”
• Lied — past participle, as in “She has lied to the jury.”
• Lying — present continuous, as in “I am not lying.”

The reclining-related verb “lie” has these basic forms:

• Lie — present simple, as in “You lie in bed when watching TV?”
• Lay — preterite, as in “He lay there until the ambulance arrived.”
• Lain — past participle, as in “She has lain in the hospital for five days.”
• Lying — present continuous, as in “I am not lying on that bed.”

The verb “lay” has these basic forms:

• Lay — present simple, as in “You lay your keys on the counter whenever entering your home?”
• Laid — preterite, as in “He laid the napkin on the table.”
• Laid — past participle, as in “She has laid it here every day.”
• Laying — present continuous, as in “I am not laying that on the bed!”

Solution:
Memorize the basic forms for each verb.