Americans Overpay Taxes by $945 Million
Americans are overpaying their taxes by $945 million a year because they don’t claim all the deductions they should, a government report said.
The General Accounting Office report said as many as 2.2million tax filers overpaid by an average of $438 in 1998 because they failed to claim deductible mortgage interest, expenses and fees, state and local taxes, and charitable contributions. Instead, they claimed a lower standard deduction, which doesn’t require record-keeping or receipts.
About half of the estimated 2.2million people who overpaid their taxes had their tax returns prepared by third parties, including accountants and firms that prepare returns for a fee.
Those who’ve overpaid can file an amended tax return and claim a refund, provided they have records to prove they have the deductible expenses.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
