Tax refunds are always celebrated every year. But what if there was a way to get more money back from the government that are legal? In this article we will discuss five different tips that you can use in order to get more money from your tax return.
5 Tips to Boost Your Tax Refund
Rethink Filing Status
While you may not want to put in extra work by filing separately, it’s been proven that you can have more money returned to you each year just by simplifying not filing as a married couple. You’re not alone if you don’t want to take the time to do this, because at least 96% of other married couples file jointly.
Use Tax Reductions
There are a few different methods that you can use in order to get a tax reduction. Keep a log of all of your travel transactions. If you have a good travel record you could report it and meet the needed minimum percentage of adjusted gross income for a deduction called “miscellaneous deductions”. Moving to a new job more than 50 miles away can also boost your tax refunds because the moving expenses are deducted as travel expenses. Lastly, charitable deductions can help with your refund. Keep records of all the money you spend doing charity work, as you can even deduct expenses and costs for items and foods you had to buy.
Maximize IRA contributions
Claim the credit on your return. Make sure to file early, as you only have until April 15th of each year to apply. Traditional IRA contributions help reduce your taxable income, and if you’re more than 50 years of age you can also add catch up provisions to be added to your IRA. Click here.
Time Your Taxes
If you want to maximize the amount of money, timing can be key. Taxpayers who want until December 31st to pay January’s mortgage can get interest added to mortgage interest deduction. Also consider scheduling your medical checkups at the end of the year as this also can help increase. Paying property taxes on New Year’s Eve can also increase your returns.
Become Credit Savvy
Every credit you use your taxes will also end up going down. If you’re like many other American citizens, you’re probably not aware that you can claim the earned income tax credit. By doing this you can increase the amount of money you get every year during tax refunds and also use your credit as a way to pay things you normally would need.
Lastly, if you’re going to be looking for ways to increase the amount of tax refunds, you should be aware that there are so many ways to earn more money each year. If you need help with your taxes and getting a higher refund, head to taxreturn247.com.au, as they can help connect you with a professional to help make the most of your tax return every year.