There is nothing worse than overlooking tax deductions and credits that could have resulted in more money in the bank. The IRS doesn’t make it any easier either with their constantly changing tax codes and deadlines. But one thing they won’t tell you; the secret ways to boost your tax refund.
Keep reading for the inside scoop. Once you boost your tax refund, your bank account will thank you.
The IRS allows you to deduct up to 50% of your income in charitable donations to organizations. Take advantage of this percentage and maximize your contributions throughout the year.
The organizations the IRS recognizes as charitable include non-profit organizations, non-profit hospitals, religious organizations, and colleges.
Are you married? Single? Have you and your significant other decided how you are going to file your tax returns?
Married couples filing together can claim double the standard deduction of individual filers.
Head of household status should also be taken into consideration. This criteria could mean a larger deduction.
Before you start the process, finalize your tax status.
Thinking of upgrading your house to be more energy efficient? The IRS hands out tax credits and some deductions for turning your home green.
While this is a larger commitment, in the eyes of Uncle Sam, that is valuable.
The information you provided on your W-4 when you first started your job determines how much money is taken out of your check for taxes. The more exemptions you claim, the less money that is taken for tax purposes.
When you reduce the number of exemptions, then a larger amount of money will be withheld from your paycheck on payday. In the end, your tax refund will be larger.
Your Human Resources Department or Hiring Manager can help you make this quick change.
While we encourage seeking out assistance with your taxes, the IRS does give you a credit for these services. Why not kill two birds with one stone, hire a professional to help with your tax returns and when it’s all said and done, claim these professional services as a write off.
Tax season can be tough. Don’t make it more difficult by overlooking the tax secrets that could mean more money for you in the end.
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