ERIC MCWHINNIE/ Wall Street CheatSheet
Tax season is officially here. The Internal Revenue Service is now accepting and processing taxreturns. Considering there will be nearly 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 taxtime. Americans will spend more on taxes than they do on food, clothing, and housing combined, according to the Tax Foundation. Employees will work about an average of 25 days to pay their payroll taxes, 14 days for sales and excise taxes, 12 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.
Americans claim over $1 trillion worth of deductions, but some write-offs are still missed. After all, the tax code is more than 70,000 pages long. Here are the most overlooked tax deductions: ...more