It is tax season once again. With it comes the dreaded April 15th deadline for filing taxes. If you are anticipating getting a tax refund are you really getting all you can? Follow these maximum refund tax tips to get the most of out of it.
Maximum Refund Tax Tips
First, consider skipping the standard deduction. Instead, consider itemizing your deductions. The more deductions you have the lower your tax liability, and bigger the refund. Take the time to gather your receipts for expenses.
Look for deductions such as out of pocket medical expenses. Student loan interest and supplies are also tax deductible. Job related expenses like mileage and any business use of home may also count. Similarly, losses due to business requirements could be deducted. Contributions to charity also are tax deductible. Some losses due to casualty or nature may be tax deductible. The bottom line is look for every single deduction that can be itemized and claimed on your return for a bigger refund.
Another way to boost your refund is by contributing to your Traditional IRA before the April 18th deadline. Traditional IRA contributions will reduce your taxable income. By contributing the maximum before filing your taxes, you will reduce your tax liability. A reduction in tax liability means you owe less, or receive more in the refund.
Lastly, don't forget the tax credits. The dependent care credit allows you to deduct a percentage of the amount you paid for care. Total expenses are capped at $3,000 for one dependent and $6,000 for two or more. The earned income tax credit allows for the reduction of tax liability for self-employed individuals who have moderate to low income.
Tax time can be stressful, but being organized can help. Seek the help of a professional accountant for help with your taxes. If you are dealing with tax debt, contact a bankruptcy lawyer in Antelope, CA for help.