Tax Tip: Did You Miss a Deduction?
By: ABC Digital
(NEW YORK) — It’s estimated that the country’s tax code is more than 70,000 pages long, so it makes sense that a lot of people miss a little here and there. But according to one study, they miss a lot.
“We did a study and last year — people left a billion dollars on the table. This is unclaimed refunds that are sitting at the IRS,” H&R Block senior tax advisor Richard Gartland says.
“There’s a lot of things that people miss. The biggest three are deductions not taken, credits not claimed, sometimes the wrong filing status — filing single instead of head of household,” he notes.
Another example: Not claiming tax preparation fees.
“That’s an includable thing for people who itemize,” Gartland says.
Tax filers may also miss taking the deduction for health insurance premiums if they pay them out of pocket.
“Many people pay that with pre-tax dollars, but if you’re paying it on your own, that’s a deductible expense,” he points out.
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