How to get higher tax return

how to get higher tax return

Things You'll Need

Increase Withholdings

Have more money taken out of your paycheck for taxes. This leaves you in position for a bigger refund and makes it more likely you won’t owe the IRS money at the end of the year.

Fill out a new W-4 with your employer to have more money withdrawn. You also can have extra money taken out of government checks like Social Security and unemployment checks by filling out a new W-4V.

Withhold taxes from investment payouts, like those from annuities, pensions or whole life insurance. A W-4P filed with the payer can up those withholdings to give you a bigger refund.

Claim All Your Deductions

Save receipts from medical bills. For example, as of 2015, you can deduct medical and dental expenses for you and your family that exceed 10 percent of your adjusted gross income. So if you made $50,000, you can deduct those expenses you paid that exceeded $5,000.

Deduct all the charitable donations you've made. Donations to 501(c)3 organizations are allowable. Ask for receipts to prove your donations in case of an IRS audit. Additionally, mileage while performing community service and volunteer work is deductible, and often can pay off in larger tax refunds.

Take deductions for personal property tax,

state and local income taxes, car and boat registrations, mortgage interest and pre-paid interest, and tax preparation fees.

Take Qualified Tax Credits

Use tax credits, which are government incentives that can reduce your tax burden and boost your refund whether you itemize or not.

Claim the Earned Income Credit if your gross income was less than $49,078. The amount is based on the number of children you have, your age and income.

Apply for a credit for child care or money you put into a retirement fund if you meet IRS guidelines.

Time Payments Strategically

Time certain payments such as mortgage and estimated taxes, to maximize your refund. For example, pay your January mortgage payment in December to claim the interest on it as a tax deduction for the current tax year. Keep in mind, however, that you’ll have one less monthly deduction for next year’s taxes.

Get medical and dental treatments performed before the end of the year to increase the medical deduction. Send contributions to 501(c)3 organizations in December as well to boost your final deduction and increase your refund.

Talk to your accountant about the timing of future payments to boost your refund in coming years. The timing of payments need to be evaluated in advance.


Category: Taxes

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