Paying taxes is nobody’s favorite thing to do. With all the paperwork, forms, and numbers, the results can really upset taxpayers.
How to Maximize our Tax Refund
It’s safe to say that most taxpayers are looking for any way to save as much as they can on their taxes or find ways to boost their refunds. There are some ways you can maximize your tax refund that you might not know about, though.
1. Consider Your Filing Status
Your filing status determines what tax return form you will use as an individual and is a determining factor in calculating your taxable income. If you are married, you may want to file jointly with your spouse, but this might not always be the best option to receive the maximum refund. Weighing out both options, filing separately or filing jointly, will help you get a clearer idea of the refund you are eligible for.
2. Remember Your Deductions
As with any deductions, good record keeping is essential. You should be recording any donations or philanthropic work that you can take advantage of. The Tax Cuts and Jobs Act raised the standard deduction in 2018, so the best move would be to consult a CPA or tax accountant to make sure you are receiving all the possible deductions you are eligible for.
3. Capitalize on IRA Contributions
If you’ve made contributions to an IRA or a Roth IRA, you may be able to claim the retirement savings contribution credit. This credit will lower your taxable income and help to maximize your refund. There are limits to a 401(k) and IRA that you may need to be aware of before filing.
4. Report all Income
Make sure you report all of your income. Oftentimes when this is missed, it isn't intentional, but it could cause potential trouble. In the event that you underreport your income, you could face penalties for unpaid taxes. Be sure you take the time to keep track of all your income streams.
5. Educate Yourself
Tax laws change frequently; there were many changes made by President Trump for the 2018 tax year. Rules, regulations, and credits come and go, so it's important to stay on top of new information. Keeping up with tax law changes can help you stay ahead.
Working With a Tax Professional
If you really want to maximize your potential tax refund, the best option is to turn to a professional. The tax professionals at Chandler & Knowles have years of experience saving people time and money when it comes to filing their taxes. We can find you all the deductions you are eligible for and make sure your tax return is filed properly and on time. For more information about our tax services, contact us today.