5 Tips to Maximize Your Tax Refunds
When it comes to filing a tax return, most people want to see their refund come in the most form possible. There are a few tax credits, deductions and other tax trifles that can help you get more back in your pocket.
The simplest way to maximize your tax return is to choose the right filing status for your situation. This can have a huge effect on your refund. You should also consider e-filing your tax return to avoid the IRS’s infamous paper backlog.
One of the most exciting aspects of a big tax refund is the ability to put that money to good use. You can put it in an FDIC insured account and build an emergency fund. Alternatively, you can use it to treat yourself to a shopping spree or pay down debt. Depending on your financial situation, you may be able to enjoy a tax credit on your mortgage interest or student loan interest. Regardless of what you choose to do, the best way to maximize your refund is to plan ahead.
The IRS has provided extensive information on the different kinds of tax credits and deductions available. If you aren’t sure what is best for your situation, you can always ask for help from a professional. Aside from tax professionals, there are other resources that can provide useful tips and tricks.
The IRS has a free calculator that can help you decide what the appropriate tax credit is for you. In addition, the IRS has recently increased the number of employees that are available to assist taxpayers. They are also looking into clarifying the requirements for various types of filing.
Aside from the IRS withholding calculator, there are many other resources that can help you maximize your refund. From e-filing to setting up direct deposit, the IRS has done its part to make the process as easy as possible.
It’s no secret that taxes aren’t cheap, but there are ways to make yours as painless as possible. Aside from the usuals, like keeping good records and making estimated payments, there are some less obvious tax credits and deductions you can take advantage of. For example, you may be able to deduct some mileage if you spend time volunteering for a charitable organization.
To the uninitiated, it’s not uncommon for small business owners to miss out on some of the more enticing deductions. However, a good tax pro can show you where to find them and how to maximize them.
Although there are many things you can do to maximize your tax return, e-filing your return is the fastest route to a big check. Plus, you won’t have to deal with a bunch of junk mail. Lastly, you can keep an eye out for new tax credits and deductions. Keep in mind that some of these are only available for a few years.
The key to maximizing your tax return is to take the time to do your research and take advantage of the tools and resources the IRS has made available to you. Take the opportunity to maximize the tax credits and deductions available to you, and you will be surprised at how much you can save.