Tax preparation: You could be leaving up to $5,000 on the table at tax time, expert says

WASHINGTON - Tax season is here, and many taxpayers could be leaving thousands of dollars on the table, according to a FOX Business report.

In an interview with the news organization, Karla Dennis, CEO and founder of tax strategy agency KDA, Inc., warns that taxpayers need to know about certain deductions and credits - before they file.

If they don’t, Dennis says, they run the risk of missing out on opportunities.

How much could you risk leaving on the table?

"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," Dennis told FOX Business.

READ MORE: Where's my refund? How to track your IRS tax return

Dennis said missing out on $2,500 to $5,000 due to a lack of awareness is a real possibility.

Know these tax credits and deductions

Here are some tax credits and deductions available to taxpayers:

Lifetime Learning Credit: For individuals changing careers or pursuing higher education.

American Opportunity Credit: Refundable for up to $1,000, helpful for education expenses.

Medical Expense Deduction: For healthcare spending exceeding 7.5% of adjusted gross income. Includes insurance premiums, long-term care premiums, co-pays, pharmaceutical payments, and mileage for doctor visits.

State and Local Tax (SALT) Deduction: Available up to $10,000 for itemized returns, covering income taxes, property taxes, and DMV fees.

Being aware of these credits and deductions can help reduce your overall tax liability, the report says. Dennis also added that taxpayers may benefit from briefly waiting to file once their return is ready in case they remember something that can be brought up to their tax advisor.