3 Ways to Increase a Tax Refund
While tax preparation can sometimes be stressful, your hard work will hopefully be rewarded by a hefty refund. However, if you don't take all the opportunities available, you may be disappointed by the amount awarded to you. To boost your refund further, practice the following steps.
How Can You Get More From Your Tax Refund?
1. Make the Most of Deductions
Deductions help lower your taxable income, which increases the amount of money you receive in return. Possible deductions include charitable contributions, child care, travel costs related to medical care, interest on student loans, and many other options. When claiming a deduction, make sure you have backing information, such as receipts, in case the IRS has questions.
2. Time Purchases & Payments
If you need supplies for a home office, make purchases before the end of the year to capitalize on deductions. You can also time charitable contributes, medical care, and even mortgage payments in this way to get the interest deducted from your tax bill.
3. Look Out for Tax Credits
The Earned Income Tax Credit is suited to people with low to moderate incomes. Eligible individuals without children can receive a credit of up to $529, while those with children may be receive up to $6,557. Credits are also available for people advancing their educations in college or graduate school, those who make their homes more energy-efficient, and many others.
Hiring an accountant to help with tax preparation can also increase your refund. ZP Tax, Inc. in Silver Spring, MD, digs into client financials to determine all possible deductions that apply. They can also offer information on claiming tax credits and will check and re-check your return to ensure it’s accurate. Other services include payroll and bookkeeping for local businesses, as well as help dealing with back taxes and liens. To learn more about how they can help with tax preparation, call (301) 587-4829 or visit their website.