Tax credits and deductions are intended to provide some financial relief to Americans, but a recent report shows that many eligible individuals may not be claiming them during filing season.
Citing the results of study - conducted by the National University's Institute for Policy Research - low- to middle-income families in San Diego County, California, receive an annual earned-income tax credit of $315 million, reports the San Diego Union-Tribune. The funds help keep more than 177,000 above the poverty line. However, results show that roughly one-quarter of eligible individuals do not claim the credit on their taxes, the newspaper said.
Though this particular study is specific to one area, it serves as a reminder that there are many tax benefits that Americans are either unaware of or do not claim, reducing the amount of money they could be receiving or saving during filing season.
Addressing this with a tax preparer may be the best way to gauge the type of credits or deductions for which an individual may be eligible. Benefits extend to expenses associated with education, child care, charities, employment and even searching for a job.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs