How to Boost Your Tax Refund
Even though tax day has come and gone, you can still make adjustments this year to increase your chances of getting a boost in your tax refund next tax season. Here are 5 things to consider:
1. Claim All Eligible Deductible Expenses
The IRS allows certain expenses to be deducted from your total income, such as business, medical, and educational expenses in some cases. If you’re not claiming all of the tax deductions that you qualify for, you may be missing out on lowering your tax bill and increasing your refund. Make sure to keep receipts, bank statements, W-2 and 1099 forms to show as proof in case you are audited.
2. Choose the Right Filing Status
Regardless of your income, your filing status plays a big role in your tax refund. Your filing status essentially determines which tax credits you qualify for and your standard deduction amount. For example, if you’re single and head of household, filing as “head of household” could help you claim more deductions and tax credits.
3. Capitalize Retirement Contributions
Maximizing your retirement contributions, such as your 401(k) or Roth IRA can also help you qualify for a tax credit. Keep in mind that there could be deduction limits, but depending on your tax bracket, adding to your retirement fund may increase how much money you get back.
4. Adjust Your W-4
If you work for an employer that withholds taxes from your paycheck, you can make changes to your W-4 form to have more taxes taken out of your paycheck throughout the year so you are more likely to get a tax refund. You can make these adjustments at any point; you don’t need to wait for tax season.
5. Work with a Tax Professional
Working with a tax professional can help ensure you are filing your taxes correctly so that you are most likely to receive a tax refund. If you need a CPA for your tax and accounting needs, JTS Associates CPAs is here to help. Contact us at (516) 877-5900.
