When tax season rolls around, all we really want is to see a nice return hit our bank account. It feels like a reward for all the hard work we’ve done that year. And you definitely deserve a reward after going through the hassle of filing your taxes. If you’re tired of not getting as big of a return as you feel you deserve, here are a few tips to get just a little bit more out of your tax return this year.
You can usually begin filing your taxes January 31st. You just have to wait for your W2s and necessary tax documents from various employers, as well as from investments you’ve made and for your insurance. If you haven’t filed yet, now is the time! The earlier you file, the earlier you’ll get your return, which is reason enough to spend some time today getting things organized.
Don’t take the standard deduction
If you have the ability to itemize your deductions, do it. You’ll save a lot more money than if you take the standard deductions that are set up. Standard deductions help you save on taxes, but if you saved your receipts throughout the year, you can itemize and get a bigger tax refund. Some additional expenses you can claim include charitable contributions, casualty loss, unreimbursed business expenses, and job search expenses. These things could push you past the standard deduction limit, which means more money being put back in your pocket.
Claim the friend or relative you’ve been supporting
If you’ve been supporting someone, whether it’s a friend, relative, or significant other, you can claim this on your taxes. You can get a dependent exemption of up to $4,000. There are rules and regulations you’ll have to meet, but if someone has been living with you and depending on you for an entire year, you shouldn’t have problems claiming them and getting the tax credit you deserve.
Refundable tax credits
The Earned Income Tax Credit is a tax credit that’s often overlooked, that can be worth up to $6,242 for a family with three or more children. But one out of five taxpayers that is eligible for this tax credit, doesn’t claim it. To find out if you qualify for this, or other refundable tax credits, make sure that you ask your accountant about it.