Just the phrase tax refund is enough to send shivers down the spine of most people. We believe this is because people are petrified about dealing with the IRS and simply don’t know that they can make simple changes to increase their refunds.
If you find yourself in the same boat and don’t know how to go about the whole process; don’t worry, we’ve got your back! Here are three tips on how you can maximize your tax refund this year.
1. Find All Possible Tax Deductions:
You may not know this but if you own and operate your own business then there are numerous tax deductions that can be made directly from your income. This, in theory, could help you save a lot of money because after these deductions have been made, there’s a high possibility that your company may fall under a different tax bracket.
This is why we strongly urge you to download some bookkeeping software and regularly maintain it. Doing so will help you identify all tax deductions that your business is eligible for and can significantly increase your tax refund.
2. Review Your Filing Status:
One of the perks of married life is that if a couple files jointly, they will receive a larger tax refund. But, this is only possible if the state recognizes you and your significant other as an official couple (i.e. that you’re married).
What’s even more unbelievable is that fact that most people don’t know about this exemption and tend not to review their filing status when filing their taxes. As a result, they miss out on thousands of dollars that they’re legally entitled to!
Make sure the same never happens to you by always reviewing your filing status before you file your tax returns.
3. Deduct All Donations:
Donations have a major say on your tax savings. Generally speaking, for every donation that you make, you’re given a compensatory sum on your tax return.
So, if you’ve been a good Samaritan this year and have donated things like automobiles, real estate, tithes, and cash, etc., you entitled to tax deductions that can significantly reduce your bill.
However, to make sure that you benefit from your donations, you must remember to make sure that the charity you donate to is 501(c) (3) nonprofits as the IRS only views them as credible charities.
We understand how daunting and scary filing tax returns can be for individuals, particularly for those who don’t have background knowledge of economics. So, if this seems like too much work or if you want to make sure that you’re getting the biggest tax return possible, we highly recommend getting in touch with professional tax preparation specialists.
If you’re looking for personal tax return preparation Las Cruces or El Paso, we at TaxBusters would love to help. With years of experience under our belt, we’re well-versed in IRS regulations and can easily help you save thousands of dollars on your yearly tax refunds.
Pick up the phone and get in touch with us today to learn more about how we can increase your tax returns.