4 Ways to Increase Your Tax Return
Around tax time each year, nearly everyone is looking for ways to increase their tax return and pay less to the IRS on April 15th. We have compiled a list of the top four strategies to boost your tax return this year and put some extra money in your pocket.
1. Review all possible tax credits: Tax credits are one of the best and easiest ways to increase your tax return. Many people do not claim the tax credits that they actually qualify for on their annual tax returns, thus losing precious dollars each year. Right now the IRS gives tax credits for child care, credit for higher education expenses, for home improvements that save energy and the Earned Income Tax Credit (EITC). These credits can change from year to year so if you have questions you may want to consult a reputable tax professional.
2. Deduct! Deductions can make a sizable difference in your refund amount each year. There are many types of deductions that might apply to you including property (clothing, furniture, cars, etc.), mileage, cash donations and tithes (to a church or other religious organizations). The key with deductions is to keep a receipt or record of the donation as back up documentation for your tax return. Many charitable organizations are set up to provide these to those who give.
3. Increase your contribution to your IRA or retirement fund. The more that you contribute to an IRA, the less of your income is actually subject to taxes. This is a great way to protect some of your own money each year, while also investing in your future. Keep in mind that there are deadlines, limits and maximum amounts to pay attention to, so you may want to consult a tax professional for specific guidance about increasing your contribution.
4. Consider Tax Planning: Tax planning throughout the year can be the best way to take advantage of all possible ways to increase your tax return. You may want to consider partnering with a tax firm who can help you project how much you will earn in the year and how different deductions, retirement contributions, etc., will affect your tax return when it comes time to file. This gives you the most control over your annual tax return and allows you to alter your finances early in the process to get the maximum benefit. It is never a good feeling when you submit your tax return and you think that your return could have been bigger.
If you still have questions about ways to maximize your tax return, consider consulting Success Tax Relief. We are a professional tax firm that has been in the business for more than 30 years helping customers with routine tax preparation and planning as well as many other important tax relief services. Our customer service team will work to get to know you and your tax situation so that we can guide you and make personalized recommendations for your taxes each year. Call us at 1-877-958-6638 to get started!