Danielle of Paychex has struggled with her own taxes in the past. With the help of Anil at 212 Tax, Danielle was able to receive more back from the government than she thought possible. Being open about her situation with Anil at 212 Tax helped her gain the knowledge necessary to reach financial success. Now, she directs all of her clients to 212 Tax because she knows they’ll
get the best tax advice available.
In 2016 alone, an estimated 8.9 billion hours was spent by Americans filling out tax forms. That’s a lot of time to spend on what sometimes can be a small payout. It’s no secret that the US tax code is confusing, even to experienced accountants. Over 66% of taxpayers get a refund each year, but it’s estimated that around 20% of Americans miss out on a tax refund of up to 6 grand each year! Don’t pay the government more than you have to by using these tips to make sure you get your full tax refund every year.
Avoid last-minute stress by filing early.
Tax season can be intimidating, and it’s easy to put off filing your forms until the last minute. The longer you wait, however, the more likely you’ll make a mistake. You can file your taxes as soon as you receive your W-2 from your employer. The sooner you file, the sooner you’ll receive your return. If you’re facing a complex filing situation due to owning a small-business or being self-employed, speak with an expert about the best way to file early on in tax season.
Look beyond the standard tax deduction.
It is tempting to opt for the standard tax deduction set by the IRS. While this will certainly lower the amount you owe to the IRS, it isn’t always the best choice. Itemizing your expenses and deductions might give you a larger refund. Also, remember you can include things like charitable contributions, losses, business expenses, and sales tax deductions in your calculations. In many cases, these itemized deductions are greater than the standard deduction.
Review possible above-the-line deductions.
There are a number of above-the-line deductions available for those who qualify. It might take extra time to review the possible options, but these can result in great payout. If you paid for your child’s school supplies, paid alimony, or paid interest on a student loan, you likely qualify for one of the above-the-line deductions.
Do you qualify for the Earned Income Tax Credit?
One in five taxpayers eligible for the Earned Income Tax Credit fail to claim it. This credit is available for working people with low to moderate income who meet certain qualifications. The EITC can reduce the overall amount of tax you owe or even give you a large refund. Most often, taxpayers miss this credit because they are newly qualified or they don’t know it exists.
Save big by contributing to your retirement fund.
Contributing to your retirement fund can qualify you for a tax deduction of up to $5,500 or more if you are over 50 years old. This can also qualify you for the additional saver’s credit of up to $1,000. It pays to plan ahead, and your 401(k) might make a large difference in your tax refund.
Review your filing status.
If you’ve recently divorced or lost a spouse, it’s time to reevaluate your filing status. However, this isn’t the only reason to review your filing status. While generally married couples receive a larger refund than single filers, there are occasionally instances otherwise. Medical expenses or student loan payments, for instance, might make it cheaper to file separately.
When in doubt, speak to an expert.
When it comes to receiving your full tax refund, you’ll need to speak to a professional. American tax code is complicated, and you might not even be aware of all your filing options. The best way to know you’re taking advantage of all of your deductions and statuses is to enlist the help of an experienced filer. Rest assured you’re getting your full return from the IRS every year by consulting the help of a 212 Tax expert.