Tax time is creeping up on us once again and folks are thinking about their refunds. Similarly, you may feel that last year’s refund was too low or maybe that it was right on target. According to the IRS, about 75 percent of taxpayers received a tax refund close to $2,800 last tax season. If you’re hoping to maximize your refund this year and get the largest one possible, here are some tips for acquiring the biggest tax refund.
Tips for Acquiring the Biggest Tax Refund
Be sure to get your hands on the most money possible this tax season! Take these tips to heart and get all the dollars back that you can!
1) Check Your Filing Status
This is one of the biggest tips for acquiring the biggest tax refund. A smaller refund or finding out you owe money can seem like a huge surprise during tax season. It could be due to an incorrect filing status. If you’re single, filing “single zero” will ensure you receive the highest possible refund. If you’re married and file jointly (like 96% of married couples), you may receive a greater benefit by filing separately.
2) Claim All Available Deductions
You have a choice between the standard deduction or itemizing your deductions. If you qualify, you can itemize your deductions for a larger refund. Additionally, you can claim your mileage for charitable or medical purposes.
3) Use Tax Credits to Your Advantage
Some of the most common tax credits include the Earned Income Tax Credit and the Child Tax Credit. The Child and Dependent Care Credit and tax credits for education expenses are also very common. Your eligibility to claim these and other tax credits typically depend on your income, filing status and whether or not you have eligible dependents. For credits related to education expenses, there are additional guidelines regarding when you can claim them and which expenses qualify.
You may also earn credits for making certain energy efficient improvements to your home.
4) Maximize Contributions to a 401k or IRA
Setting aside money in a traditional IRA is a great way to build your nest egg and score an additional tax bonus. You can fund your IRA for the previous tax year right up to the April filing deadline. Your contributions may be partially or fully deductible.
5) Timing is Everything
Homeowners can ensure a larger refund if they pay January’s by December 31st. This results in added interest for your mortgage interest deduction. Additionally, any scheduled medical procedures and expenses given before December 31st can boost your medical expenses deduction. Start browsing Salt Lake City Real Estate now to ensure you get the mortgage deduction on your 2019 return.
You can file your taxes yourself using a paper form. However, to expedite the process and ensure everything is accurate, we recommend that you use tax software such as Turbo Tax or H&R Block. There are free file sites available as well if you meet certain income requirements. Each of these programs walk you through the entire process and let you know what your refund will be. You’ll have peace of mind knowing that your return was done right.
These are just a few tips for acquiring the biggest tax refund. As always, consult a professional before making any tax decisions. They will be able to properly advise you on the best option for you and your family to ensure you receive the largest tax refund possible.
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.