2015 Taxes: Plan Ahead and Boost Your Refund
It is never too early to begin working on your taxes for the coming year, especially if your goal is to boost your refund. There are several key steps you can take now to put yourself in a position to maximize the money in your pocket come April 2015!
1. Family expenses may be deductible: There are many tax breaks that the IRS gives to families so you should make sure that you are taking advantage of all of those that apply to you. You may be able to deduct costs associated with caring for dependents (children or parents), alimony and some health care expenses. These types of deductions can be complicated so you may want to consult a tax firm to be sure that you are deducting appropriate family related expenses.
2. Increase your annual deductions: Deductions are a great way to give your refund a boost and reduce the amount that you owe the IRS. There are many ways to plan for increasing your annual deductions. You can consider donating clothing and other household items to a charity, deduct any mileage if you used your car to assist a non-profit, donate cash to a non-profit or religious organization. You do need to make sure to keep any/all receipts and the organization that you donate to must be a non-profit with a 501(c)(3) status.
3. Change your W-4 at work: If you work full-time for a company, you completed a W-4 when you started your job. You should know that you can amend your W-4 at any time and increase your tax withholdings so that you can protect yourself against owing the IRS at the end of the year. When you reduce the number of exemptions on your W-4, you increase the amount of money taken out of our paycheck for taxes each pay period. As a result, your tax refund will be higher. Generally, this change can be made by contacting (or visiting) your Human Resources Department.
4. Putting more of your money into a retirement fund is one of the most highly recommended ways to increase your tax refund. Putting money into an IRA (Individual Retirement Account) actually lowers your taxable income, which usually translates to paying less in taxes to the IRS. There is usually a maximum amount you can contribute to your retirement fund, so you will want to investigate this ahead of time.
5. Be your own boss: You can also increase your tax refund by starting your own business. As the owner of a home-based business, you can deduct things including your physical home office, office supplies, telephone and internet fees, a computer and even a portion of your electric bill. Starting your own home business can be the first step toward financial freedom!
Getting a tax refund next year is within your reach. There are countless ways to ensure that you get money next year, rather than paying the IRS. The key is planning ahead and taking charge of your taxes. Consider partnering with a tax firm that can help you identify specific areas that will increase your refund. Success Tax Relief has been working with customers all over the country for 30 years and would welcome the opportunity to work with you on your taxes in the coming year. Contact us today for individual solutions that will work for you!