It is not easy to get a bigger tax refund from the IRS. However, with some tips, you can boost your tax refund. Learn the 4 tips here.
Come tax season, you want to either pay less tax bill or get a bigger tax refund. However, this will all depend on your withheld taxes, income and other factors such as deductions and tax credits. One thing you need to do to increase your tax refund is filing your taxes on time to avoid penalties. To help you increase your tax refund, here are 4 tips for you.
1# Pick Your filing status wisely
You can file your taxes either separately or jointly, that is if you are married. Tax payers earning a low to moderate income are eligible for Earned Income Credit. Also, they can still qualify for Child Tax Credit. Therefore, before you file your taxes, do the calculations to know whether to file taxes separately or jointly. But you don’t have to do all the calculations, just use earned income credit calculator to do all the calculations. Pick the filing status giving more tax refund.
2# Take advantage of tax deductions and tax credits
There are many deductions and tax credits you qualify for, but you don’t even consider them when filing your tax returns. This is the time to embrace tax deduction as well as credits if you want to increase your tax refund coming tax season. Learn how to calculate the earned income credit, child tax credit, medical tax deductions, among others, so that you can include them in your tax returns. Also, check if you qualify for child and dependent care, medical miles, charity miles, and others. By taking advantage of all these tax credits and deductions, you will definitely get the biggest tax refund ever in the coming tax season.
3# Meet the deadlines
If you don’t want to complicate your tax filing process, file your taxes early in advance. Have all the information and documents you need to file the taxes, and file the tax returns before the deadline. If you file your tax returns after the deadline, you can face penalties from the IRS, and that will lower your tax refunds.
4# File your tax returns using the best online tax filing software
You may not be aware of all the tax deductions and tax credits you qualify for. However, using TurboTax or H&R Block when filing your tax returns, you can capture all the deductions and credits. The online program will ask you some questions and request for information. With the information, the online tax filing software and with the help of tax specialists behind the scene, will determine all deductions and credits you qualify for. As a result, they will help you include them in your tax returns, and that will definitely increase your tax refunds or lower your tax bill.
With the above tips, you will definitely increase your tax refund come tax time. However, if you don’t get a refund, you will pay less tax bill. You must take advantage of tax credits and deductions you are eligible for. Also, file your taxes online using either TurboTax or H&R Block, and you will realize the difference.