The best part of doing taxes is hopefully receiving a hefty check when the work is finally complete. That’s why it can be so disappointing to discover your refund is less than expected, especially if you were counting on the extra cash to pay down debt or take a much-needed vacation. In some cases, you may even owe the government money. The guide below looks at how to improve these numbers next year.
How Can I Boost My Tax Refund?
1. Make the Most of Deductions
There are a variety of deductions at the disposal of taxpayers. However, because the process can be a bit intimidating, many people are wary of claiming them. An accountant can help ease your concerns and find applicable expenses to write off. This can include any donations you’ve made to charity or certain medical expenses. However, speak to them well-ahead of tax season so you know what receipts to save to validate your claim.
2. Give Some Thought to Your Filing Status
Most married couples file their returns jointly, which is often a more cost-effective method of doing taxes. However, since your adjusted gross income is used to determine your eligibility for many deductions, there are cases where your combined income places the two of you into a higher tax bracket than if you filed separately.
3. Make Contributions to Your Retirement Fund
In addition to being able to tax-defer any money you put into a 401(k) or Roth 401(k), contributions to an IRA can result in a deduction equal to the amount you contributed—up to a maximum of $6,000. Also, talk to your accountant about an additional savers’ credit that you could earn for funding your retirement account worth $1,000 for those filing separately and $2,000 for those filing jointly.
With more than two decades of experience, Donna Sellers, CPA works with her clients to maximize their refunds when doing taxes. As an accountant in Brownfield, TX, she makes it a point to stay informed of changes in the tax laws so she can provide up-to-the-minute advice. Learn more about how she will help increase your return by visiting the website. You can also call (800) 618-4914 to schedule a free consultation today.