Tax season is officially here as the Internal Revenue Service is now accepting and processing 2014 tax returns. Considering there will be approximately 150 million individual returns filed this year, Americans should double-check their forms and make sure common deductions are not missed.
The timeless saying, “It’s not how much you make, it’s how much you keep,” is best applied at tax time. Americans will spend more on taxes than they do on food, clothing, and housing combined, according to the Tax Foundation. In fact, employees will work about an average of 27 days to pay their payroll taxes, 13 days for sales and excise taxes, 11 days for property taxes, and 7 days to pay other taxes such as estate taxes. Since corporations often pass expenses to consumers, the foundation estimates that Americans will work 9 days to pay their share of corporate income taxes.
In total, Americans will claim over $1 trillion worth of deductions and receive refunds in the neighborhood of $300 billion, but some valuable tax benefits are still missed. Let’s take a look at the most overlooked tax deductions, with the help of TurboTax and the tax code.