Taxpayers leaving thousands of dollars on the table at tax time: expert

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Tax season officially begins Monday when the Internal Revenue Service (IRS) will begin accepting returns for the 2024 tax year, but taxpayers should be aware of deductions and credits that could be worth thousands before they file, a tax expert warns.

Karla Dennis, CEO and founder of KDA, Inc., a tax strategy agency, told FOX Business that taxpayers run the risk of leaving upwards of $2,500 to $5,000 on the table due to a lack of awareness of certain tax credits and deductions that they may be eligible to claim and reduce the amount of taxes they're on the hook for.

«Many taxpayers are leaving money on the table,» Dennis said. «I've been in the industry for 30-plus years and when I work with individuals taxes and talk with them, I realize they're very unaware of a lot of the various tax credits that they can use to offset their tax liability.»

Various tax credits and deductions are available to taxpayers who've spent money on certain activities such as education, medical expenses, state and local taxes and more.

IRS ANNOUNCES START OF TAX SEASON – WHAT TO KNOW

Taxpayers should familiarize themselves with tax credits and deductions they may be eligible for prior to filing their tax return. (Michael Bocchieri/Getty Images / Getty Images)

«Many taxpayers are changing careers, they're going back to school, they're getting higher education, and they're not familiar with the lifetime learning credit, the American opportunity credit, and these can help to reduce their overall tax liability,» Dennis said.

She added that the American opportunity credit can be refundable for up to $1,000 which can be helpful for