Spending just a little more time researching potential deductions can fatten your refund check. Arm yourself with knowledge by boosting your tax credits, working with a professional and timing payments for specific expenses.
Use these 5 smart tips to receive a maximum tax refund check.
Boost Your Credits
Your refunds will increase if you boost your tax credits. Most Americans don’t claim the earned income tax credit. Working, single taxpayers with no children can still claim the earned income tax credit if they meet the guidelines. Lower your taxes by a buck for each credit dollar you claim.
Couples with children attending college can explore credits relevant to higher education expenses. Graduate students may be eligible for learning-related credits too.
Work with a Professional
Working with a certified public account leverages both your time and knowledge. Tax professionals know how to maximize your refund based on your specific situation. Hiring someone gives you access to tax knowledge and lesser know laws which you’re probably unaware of.
Spending your precious time and energy to find out all you need to know to lighten your tax burden can be an arduous task. Even if you save a few dollars come tax time you’re almost certainly missing out by not working with a licensed professional.
Pay a pro to maximize your refund check. Adopt a big picture approach to your taxes. A small investment spent hiring a professional can reap massive returns in the long run.
Time it Right
Increase the size of your refund by watching the calendar. Maximize your mortgage interest deduction by send in January’s mortgage payment prior to December 31. Increase your medical expense deduction potential by setting up health-related exams for the last quarter of the year.
Send in your property taxes by New Year’s Even to increase your refund. Paying before this date will make the difference between going with the standard deduction or itemizing.
Self-employed entrepreneurs should pay fourth quarter estimated state taxes in December instead of January to itemize effectively.
Max out Your IRA
Increase your IRA contributions to the maximum level to reduce your taxable income. Open a traditional IRA before April 15 to boost your refund for the prior tax year.
Aggressively Explore Deductions
Some individuals are nervous to explore tax deductions for fear of being audited by the IRS. If you’re working within the bounds of the law you’re entitled to any and all deductions possible. Log trips to the doctor’s for appointments, job searches and volunteer work to maximize your deductions.
Make sure to keep taxi, bus, toll and parking receipts for your records. Keep accurate travel records to reach the threshold for adjusted gross income so you can make miscellaneous deductions.
Travel, storing and moving expenses can be deducted if you are moving 50 miles for a new job. Working full time at the job for at least 39 weeks is a requirement to be able to file these types of deductions.
Contact Wallace and Associates for your tax preparation needs.
