No matter the time of year, it’s always a good idea to think about your taxes. So many people rely on their yearly refunds to boost their savings accounts, pay off debt, and make essential purchases. Filing your taxes can be a complex process, especially if you’ve worked multiple jobs or are unfamiliar with terms and regulations. Here are some helpful tips for maximizing your tax refund so that you get everything you’re entitled to.
Reduce Your Taxable Income
Reducing your taxable income may seem counterproductive to people with low incomes, but it’s not as scary as you’d think. Limiting your income doesn’t mean making less money; it means moving things around so that you don’t move up a tax bracket. For example, accepting a bonus at the end of the year might increase the taxes that you owe, so ask your boss to defer it until the beginning of the following fiscal calendar.
Claim Your Dependents
Another helpful tip for maximizing your tax refund is claiming your dependents. If you have children, you’re probably already doing this. However, kids aren’t the only dependents you can claim if you’re providing care for others. Are you responsible for elderly parents or giving support to a loved one in need? If so, you might qualify for a non-child tax deduction, which could seriously increase your total refund.
Keep Your Receipts
If you’re planning on writing off expenses to bolster your refund, make sure you keep all your receipts. This is especially helpful if you made a significant purchase and paid a lot of sales tax. You’ll need to prove that you spent this money to avoid legal problems and get the most back. Dedicate a drawer, folder, or file cabinet to organize your financial documents so that they’re easy to locate and use when it’s time to file.
Consult With a Professional
Of course, the easiest way to get the most out of your taxes is by consulting with a professional. Tax experts know where to look for breaks you might not even know exist. For example, your tax professional can tell you if you can deduct your water filtration system and other unexpected renovations. They also know how to navigate the filing process and do it correctly to avoid mistakes that could delay your refund.
Filing your taxes shouldn’t be a stressful experience. By following these tips, you can get a larger refund and have peace of mind with additional financial support.
