On the other hand, are you tired of getting worthless tax refund checks every year? Do you get the chance to use this? No? Not ever?
Well, if this is your problem, there are ways for you on how to get bigger tax refund and use it for your advantage.
Here are some of the tips for you:
Start Itemizing: It’s one of the ways for you to lower your taxable income and pay less. You could simply take the standard deduction or itemize. The standard deduction is a set amount that you can deduct if you do not itemize. For the married couples, it will be $11,900, filing jointly. Itemizing simply means like adding up your different separate deductions by using the Schedule A, an IRS form in order for you to see the total is more than the standard deduction.
Take other deductions and credits in consideration: Now that you know whether you are taking the standard deduction or itemizing, the next step that you need to take is making sure that you claim all of the other credits as well as deductions applicable to you. You may simply qualify for some, in addition to the deductions you also claim.
Hire a professional to prepare your tax refunds: These days, most people turn to a tax preparation company or simply use a good computer program. It is somewhat worth the investment, since they
recoup the cost in higher refund. Software such as Turbo Tax can easily walk you through all of the steps and costs between $30-$70 for the federal and $35 for the state return.
Moreover, a professional tax planner can easily play with all the number in the computer software in order to evaluate what changes you could make in order to lower the tax bill and making the refund bigger.
Review your status of filing: Filing status like being the head of the household, single, married filing jointly or separately can easily influence the amount of money that you receive in your refund. Filing status may simply change if you lose a spouse to divorce or death and this simply makes you eligible for larger refunds.
Tax Planning – Tax planning is one of the ways to take advantage of these deductions and get the biggest refund of your tax. Tax planning starts at the beginning of the year and the money you will earn is taken into the account. It also goes with how different expenses affect the total amount of tax that you owe.
Planning even helps you evaluate different ways of using your money to purchase everything that you need, deductible items or simply make other tax-reducing investments.
If you would like to get bigger tax refund and make your expenses light and easy to handle, considering the tips mentioned above would be great.