Nobody wants to overpay on their taxes and many really count on getting a refund. That extra money can be a life-saver just when you need it most. Follow these tips to make sure you're getting your full refund back this year.
Reevaluate Your Status
Your filing status isn't an arbitrary classification as may think. For a lot of people, changing their status can have a big impact on the amount they pay and how much they get back. Even if your status seems obvious, go over all the options and figure out which of the choices you qualify for will best serve your wallet.
Take A Crash Course In Credits & Deductions
Too many people assume they already know which tax credits and deductions they qualify for. The problem is, the IRS changes things up from time to time and your life is in constant flux. There's no way to know if you're taking advantage of all the possible credits and deductions unless you go through them and check.
The next decision to make is whether or not to itemize your deductions. If, after assessing which you qualify for, you're sure that your deductions won't be higher than that of the standard deduction, then stick with that. However, if it could be higher, it may be well worth the time to itemize.
Check The Retirement Account Rules
You may have put enough money into a traditional retirement account this year to put off paying taxes on that money until you withdraw it later in life. Just make sure you specify which year you'd like it to count towards.
Timing Is Key
Many deductions can actually be increased just by making sure to do certain things closer to the end of the year. Your mortgage payment, health expenses, and even work equipment purchases can get you extra deductions if you time them properly.
Double-Check Your Withholding
How much you should be withholding depends on a myriad of factors. Many major life events like marriage, divorce, a baby, or job changes can cause that number to shift. Double-check that you're still withholding the right amount each year.
Make The Tax-Advantage Your Advantage
A lot of employers provide the option to use tax-advantage spending accounts for things like health expenses and transportation. Check into them and see if you could be using them to raise your refund.
Don't Rely Solely On Your Own Expertise
This one cannot be stressed enough. It is imperative that you work with a tax expert on these matters. Not only are they very confusing, but there are plenty of really helpful things that only a tax accountant will know how to properly use to your benefit. It's too important to do alone.
Take Nothing For Granted
So many of these things rely on not being complacent with your taxes. It may be tedious and difficult, but the effort you put in is well worth the money you'll get out. So double-check everything just to be sure you aren't missing out on extra savings.