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Boost Your Tax Refund

Boost Your Tax Refund

Boost Your Tax Refund

There is nothing better than receiving a tax refund in late April or early May that is bigger than expected. Your refund is impacted by a variety of factors. There are a few things that you should begin thinking about now so that you can potentially implement them into next year’s filing and net yourself a larger refund.

Consider Your Filing Status

How you choose to file will have a significant impact on your tax refund. Although nearly 96% of married couples choose to file jointly, choosing to file as married-filing-separately can yield higher tax savings. This is because filing separately gives both individuals a lower adjusted gross income, which can allow both parties to be eligible for deductions that they were not eligible to make had they been filed jointly.

You can also see tax reductions if you’re a single parent that claims dependents and files as the head of household. One or more children will have needed to live with you for more than six months, and you must have paid more than 50 percent of the cost of keeping a home.

Plan Payments Ahead

Strategically making payments can impact your tax refund. For example, if you pay your January mortgage payment before December 31, you will be able to add the interest to your mortgage interest deduction. Additionally, if you’re self-employed, you can increase your itemizing potential if you pay your property taxes by December 31.
You can also increase your medical expense deduction by scheduling any exams and treatments in the last quarter of the year.

If possible, you should also maximize your IRA contributions. You have until tax day to open a traditional IRA for the previous year, so you can claim the credit on this year’s filing. A traditional IRA reduces your taxable income, which should help increase your refund. If you contribute to a Roth IRA, you’re doing so on post-taxed income. However, you may qualify for the retirement savings contribution credit.

Track Your Deductions

There are many deductions that can be taken when filing your taxes, but most people do not take all of what they’re entitled to. For example, charitable donations can help increase your refund at the end of the year. You’re also allowed to deduct mileage for volunteer work and doctor’s appointments, in addition to any job-hunting expenses. Talk to a tax professional to see what deductions you’re eligible to take, and how you should be tracking them throughout the year.

Allow Professionals To Review Your Filings

Allowing tax professionals to look over your filings for errors and loopholes could make a big difference when it comes to maximizing your return. Fortunately, Sherbetjian Premium Tax Services is here for you. We strive to provide you with a personalized tax plan and are available for consultations year-round. If you’re looking for steps you can take this year to increase your refund next year, contact us today at (805) 230-0085.

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