Filing taxes each April can be a mundane and baffling task. However, you can make the tax-filing and bookkeeping process more positive by boosting next year’s refund. You not only become a more organized and informed citizen, but you also end up with more money in your pocket. Below are a few ways to ensure you get a larger return.
3 Tasks to Boost Next Year’s Tax Refund
1. Rethink Your Filing Status
Standard deductions change based on filing status. If you’re married, you naturally want to jointly file with your spouse. But you could receive a larger refund if you file separately, particularly if one spouse is accountable for larger expenses. It might require some additional work, but the extra cash is worth it. For a single taxpayer, it might be more appropriate to file as a “head of household” if you’re a single parent or you support another person.
2. Begin Bookkeeping Your Tax Deductions
Spend a few extra minutes researching which activities are tax deductible and itemize them when you file. Here’s when detailed bookkeeping efforts come in handy. Record the mileage you drive for volunteer work and the amount you give to charitable organizations, such as Goodwill. Even moving expenses for a job can increase your refund depending on the distance traveled and how long you’ve worked at your new job.
3. Watch Your Time
Mortgages, healthcare services, and property taxes are just a few of the costs that can boost your tax refund. However, it depends on when you pay them. Pay your January mortgage and any property taxes before December 31st. Take care of your doctors’ appointments and other health issues during the last three months of the year. This advanced planning allows your accountant to provide you with a larger refund.
In addition to following these tips, hiring an accountant will secure you a bigger tax refund. Reach out to Tostrud & Temp, S.C. in La Crosse, WI, at (608) 784-8060 to get a head start on an affordable and high-quality tax filing process. Their range of bookkeeping and tax services include both personal and business tax preparations. Visit their website to learn more about how they can create a customized tax-filing process to boost your refund.