Like there is not enough stuff to take care of in our lives already, the tax season is upon us again. While you can’t control the fact you have to pay taxes, you have the full power over the amount of refund you can get. Try these seven proven ways to get the biggest tax refund this year.
Not only donations make you a better person, but also help to get a tax refund. The good news is all kinds of donations are considered as tax deductions decreasing your tax bill. The bad news is there are some rules you have to follow. The organization you are supporting must be non-profit. Charities provide this information on their websites though so it’s easy to check. Another key thing is keeping the receipts. Legitimate non-profits have special places where you can grab all the receipts you should have received for your donations. You can get a refund for such items as furniture, clothing, mileage, and tithes.
Increasing IRA contributions
Increasing your contributions to the retirement fund is a proven way to raise a tax refund. Whatsmore, contributing money into the IRA decreases the total taxable income. The lower taxable income you have, the less you owe in taxes. The less you owe in taxes, the bigger is your refund. There is a deadline you have to stick to and a maximum amount you can contribute. Thus, make sure to invest time in researching these details.
Official employment has its hidden benefits. The first thing you do after being officially employed is filing the W-4 tax form where you claim your allowances. When you claim fewer allowances, you increase the amount of money that is withheld from your check every payday. As a result, your tax refund might be more significant. If you don’t have many dependents that you could claim allowances for, you might not enjoy much of the refund though. You can always update your W-4 form by requesting a change from a Human Resources manager.
Running a business from home
People who run their businesses from home can deduct things like maintenance, Internet, and office supplies. When you launch your business, the initial deductions might suggest you’re getting a refund later. If the company is profitable, the continuing deductions provide financial freedom. A home-based business can bring you around $3,000 in tax savings.
Tracking work-related expenses
There are some jobs where employers have to buy equipment by themselves. Some of those expenses can be deducted from the income taxes to increase a tax refund. For example, if you use your phone for both personal and work needs. The amount spent on work needs might get back to you as a refund.
Investing in ecology
Not only is being environmentally friendly a trend, but it’s also supported by the government. You can accommodate your home with solar powered batteries and other power-saving systems and receive credit until 2022. You can also get an extra return from IRA by purchasing hybrid vehicles.
Now as you are aware of all the ways, make sure you act fast. Money moves won’t make themselves.
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