VIRGINIA BEACH, VA--(Marketwired - Mar 18, 2015) - Liberty Tax, Inc. (
"Most of the errors on individual tax returns are errors of commission as opposed to omission," said John T. Hewitt, CEO of Liberty Tax. "A little more time and energy devoted to the tax return can pay off for many taxpayers."
The standard deduction does not allow taxpayers who pay mortgage interest and points or state and local income taxes or medical bills to calculate those deductions. Instead, the taxpayer opts to take a set amount. For the 2014 tax year, the standard deduction is $6,200 for single taxpayers, $9,100 for heads of household, and $12,400 or those married filing jointly.
When taxpayers itemize and include their deductions, they lower their tax liability and increase their tax refund -- sometimes significantly. A Government Accountability Office report, "Taxpayers Who May Have Overpaid Federal Taxes by Not Itemizing," estimated that almost 70 percent of all individual taxpayers took the standard deduction, and more than 2 million collectively overpaid the government by $945 million because they did not itemize although they were eligible for deductions. About 24 percent overpaid by $500 or more.
The report was published in 2002, but taxpayer patterns have not changed dramatically. In tax year 2012, nearly two-thirds of all individual taxpayers took the standard deduction.
"No one wants to overpay the IRS, and no one should," said Hewitt. "A qualified tax preparer can help ensure that taxpayers get what they deserve."
About Liberty Tax, Inc.
Founded in 1997 by CEO John T. Hewitt, Liberty Tax, Inc. (