Americans Are Losing $1 Billion A Year By Not Itemizing Their Taxes

28 Feb Americans Are Losing $1 Billion A Year By Not Itemizing Their Taxes

Over at Free Money Finance, a personal finance blog I read regularly, a post that made me look twice – Americans are literally giving away nearly $1 billion every single year because they’re not itemizing their taxes. The article originated from a bit of news from Money Central on the subject. The Money Central article says

If you took the standard deduction on your 2006 tax return, you may want to take another look. You might have cheated yourself out of some tax savings. In fact, you may even want to look at your 2005 and 2004 returns as well.In the past, the General Accounting Office has found that filers who used the standard deduction instead of itemizing paid the Internal Revenue Service almost $1 billion more than they should have.

In fact, the average American taxpayer is giving up $438 per year to Uncle Sam. And the bulk of that money is concentrated in lower-income and middle-income people. Folks just like you and me, losing $438 down the drain.

Just think about what $438 could buy you. Two weeks worth of groceries for a family of 4, plus gas for the car. 4 months of cell phone usage. Maybe a good chunk of your rent this month.

I know you’re busy and those H&R Block commercials make it seem just so easy to come on in and get your taxes done. But by spending just a little bit more time on your taxes you could be saving a lot of money.

Money you could be using to take care of yourself and your family.

So do yourself a favor. Hire a CPA to do your taxes. At the very least, buy a software program to do the work for you.

But by all means, don’t let that $438 slip through your fingers again this year.

Pasadena Bankruptcy LawyerJay S. Fleischman is a bankruptcy lawyer in the Los Angeles area. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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