Americans Overpay Taxes by $945 Million

Americans are overpaying their taxes by $945 million a year because they don’t claim all the deductions they should, a government report said.

The General Accounting Office report said as many as 2.2million tax filers overpaid by an average of $438 in 1998 because they failed to claim deductible mortgage interest, expenses and fees, state and local taxes, and charitable contributions. Instead, they claimed a lower standard deduction, which doesn’t require record-keeping or receipts.

About half of the estimated 2.2million people who overpaid their taxes had their tax returns prepared by third parties, including accountants and firms that prepare returns for a fee.

Those who’ve overpaid can file an amended tax return and claim a refund, provided they have records to prove they have the deductible expenses.