Like Most Americans during this time of year, you’re either highly anticipating that hefty income tax return check for 2016 (or received it already if you were really eager), or scrambling to get it filed still if you’re more of a “I’ll-get-it-done-tomorrow” type of person.
Either way, U.S. News and World Report reports that most Americans can expect their income tax return to be nearly $2,900 on average. In addition, the IRS reports that by April 25, 2014, it payed over $224 billion in income tax returns.
U.S. News and World Report also reported that many people greatly benefit from big tax returns — however they’ve found that if you are getting a nice fat check, then it probably really is too good to be true.
Because getting large income tax returns typically means that you’ve payed too much taxes with each paycheck for that year.
This is why the IRS gives income tax returns each year, however they are not doing so with interest. And on top of that, many Americans overlook crucial tax deductions that they could have claimed — thus, losing even more money.
Most tax payers know the basics when filing for their income tax returns, like filling out your W-4 properly, claiming dependents, and other itemized tax deductions.
Yet Turbo Tax reports that many Americans are still burning a hole in their pockets with these woefully overlooked income tax return deductions, which are all too common.
- State sales taxes
- Reinvested dividends
- Out-of-pocket charitable contributions
- Student loan interest paid by Mom and Dad
- Moving expense to take first job
- Child and Dependent Care Tax Credit
- Earned Income Tax Credit (EITC)
- State tax you paid last spring
- Refinancing mortgage points
- Jury pay paid to employer