5 Ways To Boost Your Next Tax Return

21 May 2020
 Categories: Finance & Money, Blog

No one loves to pay taxes, but it's a big part of life. It's essential that you stay on top of your tax filing responsibilities so that you ensure you're paying the right amount of taxes each year. There are steps that you can take to lower your tax bill and maximize your return. It may take some adjustments to your current routine or habits. Keep reading to learn some ways to boost your next tax return.

Use the Best Filing Status for Your Situation

 Make sure that you're using the right tax filing status for your individual situation. Each tax filing status has its own unique set of benefits. If you've had life changes recently, do talk to your accountant about these changes to see if you need to adjust your filing status.

Maximize Contributions

Do be sure to maximize all contributions each year. Traditional IRA contributions and Health Savings Account contributions can help you reduce your taxable income. It's silly not to maximize your contributions if you have the ability to do so.

Deduct as Much as You Can

There are so many opportunities to deduct when filing your tax return. You may be aware of some of the more common tax deductions, but there may also be more unique, lesser-known tax deductions that you qualify for and this can lower your tax responsibility. Child and dependant care costs, earned income tax credit, and student loan interest are some deductions that you may not be utilizing. Always be open and honest with your tax preparer about your life situation and expenses so that they can help you deduct as much as you can.

Review All Life Changes

Do review all life changes since your last tax filing. Even the smallest changes can make a difference and may allow you to get a bigger refund this year.

Hire a Professional

It may be tempting to try to do your own taxes each year, but you're not a professional. You can utilize the advice and experience of a professional tax preparer so that you get the best outcome. They can help you find hidden ways to boost your tax return so that you spend less on taxes.

If you're ready to take a look at your tax situation and you want to make sure that you're making the right tax choices this tax season, contact a tax preparation service to see how they can help out.