Between work, family, and other responsibilities, busy people may not give their taxes a second thought—until it’s time to file with a tax help specialist. That’s when earnings and other financials are scrutinized to determine whether you will have a refund coming or need to pay Uncle Sam. Here are some of the most common factors that could affect how much your return will be.

What Factors Can Play a Role in Your Tax Return Amount?

1. Tax Credits

There are a number of them that can help reduce your taxable income, such as the child tax credit. Parents are eligible to receive $2,000 for each qualifying child. Other credits include the American Opportunity Tax Credit and one for child and dependent care expenses. A tax help specialist can help you determine all of the credits you’re eligible for.

2. Deductions

While the 2018 Tax Cuts and Jobs Act made some changes to standard deductions, they can still have an impact on your tax return amount. From charitable donations to medical expenses, there are a variety of deductions. The new law also increased the standard deduction to $12,000 for single filers and $24,000 for married couples filing jointly. Itemized deductions are permitted if they don’t exceed 2% of your adjusted gross income.  

3. Employee Withholdings

New employees are required to complete a W-4 at each job. It is used to calculate how much taxes are withheld from each paycheck. List the proper details to ensure the proper amount is being withheld. This simple tip can make a difference as to whether you get a refund or owe taxes.

4. Mortgage Interest

If you’re a homeowner, you’re eligible to deduct the interest paid on your loan for the previous year. Depending on the amount, this can have a significant impact on reducing your taxable income. Keep in mind that the 2018 Tax Cuts and Jobs Act made some changes to eligibility requirements, such as the deduction only applies to new mortgage loans and interest can no longer be deducted on home equity lines of credit.

When filing your tax returns, you want to ensure you’re taking steps to maximize the amount you receive. ZP Tax in Montgomery County, MD, is the agency individuals and business owners continue to turn to for professional tax help. Call (301) 587-4829 to schedule an appointment or learn more about their tax help services.