The Double Check Challenge (NAPSA)—Arecent General Accounting Office (the investigative arm of Congress) report estimated that more than one million Americans overpaid their taxes by approximately $945 million, an average of more than $400 per person filing an incorrect tax income workers. To offset payroll taxes and encourage work, the credit reduces the amount of tax owed (if any) so workers end up paying less tax and may even be entitled to a refund. The Double Check Challenge from H&R Block helps taxpayers avoid such costly mistakes by helping them take advantage of every tax benefit that the law allows and receive the tax advice they need—even if they have already filed a tax return. This service ensures consumers get every penny they can under the law, even from tax returns they filed up to three yearsprior. Double Check Facts: fully deductible expense (if you itemize). Given the amount of interest the average homeowner pays on their mortgage each year, this is a huge oversight. 3) Charitable Contributions —Tracking all the contributions madein the previous year may be difficult but it becomes well worth return. You can amend tax returns up to three years after thefiling date. H&R Block reviews old tax returns prepared by other services or individuals at no charge to find mistakes and missed deductions or credits. Clients can then elect to pay H&R Block to prepare an amended return. Last year, H&R Block found an average of $1,300 in missed deductions and credits for every tax return that is Double Checked and amended. Last year, 89 percent of those who took advantage of the Double Check service and for whom the company prepared an amended return received additional money back. Some of the most commonly overlooked credits and deductions include: 1) EIC—Theearned income tax credit (EIC) is a credit for lower 2) Mortgage Interest—Many people also forget, or are not aware, that mortgage interest is a it at tax time, reducing taxes on a dollar-for-dollar basis up to limits set by state and federal tax laws. 4) Student Deductions—Students and parents with dependent children in college often overlook valuable credits, such as the Hope and Lifetime Learning credits that provide up to $1,500 or $1,000, respectively. 5) Job-Hunting Expenses—If a taxpayer is unemployed and is incurring expenses as part of a job search, some of the expenses are deductible. 6) Medical Expenses—Nonreimbursed medical expenses are also tax deductible, a fact which often escapes the average taxpayer. 7) To Itemize or Not to Itemize—To reap the most tax benefit, it’s important for taxpayers to examinetheir tax situation to see if they are able to itemize deductions versus taking the standard deduction. Taxpayers needing advice on how to determine if they can itemize deductions should seek assistance from a tax professional.
