Taxes Are Still Complicated, and It’s Costing Americans Billions — How You Can Save This Season

Core Insights - The U.S. tax system's complexity leads to significant financial losses for taxpayers, with billions lost due to mistakes and unclaimed credits [1][2] Group 1: Taxpayer Burden - Americans spent 7.1 billion hours on tax-related paperwork in 2025, incurring approximately $148 billion in filing expenses [2] - About 1.1 million taxpayers have not filed their 2021 tax returns, potentially losing over $1 billion in refunds, with a median refund of $781 [3] - Many eligible taxpayers fail to claim tax credits, such as the Earned Income Tax Credit, resulting in $7.6 billion left unclaimed in 2020 [4] Group 2: Missed Opportunities - Taxpayers who missed the 2025 deadline lost around $1 billion in recovery rebate credits due to not filing [5] - It is advised that taxpayers file their taxes even if unsure about refunds or credits to avoid losing owed cash [6] - Resources for tax filing assistance are available, including low to no-cost options and IRS volunteer programs [7] Group 3: Maximizing Claims - Taxpayers should ensure they claim all eligible credits and conduct thorough research or ask questions during the filing process [8] - Utilizing good tax software or experienced preparers can help identify eligibility for various credits [8]