Tax refunds are something every taxpayer looks forward to. According to research, the average tax refund amount is roughly $3,000. But what if we told you there are steps you can take to maximize your refund and get your money back that you would have overpaid? Here are the top four strategies for maximizing your tax refund.
It’s essential to claim your dependants properly if you want to benefit from the child tax credit and the child and dependent care credit. In recent years, both credits have increased the amounts payable to you. So, for instance, if you haven’t yet claimed a child or dependant, claiming your dependants properly this time around can increase your tax refund. If you’re not sure how to claim your dependants properly, you can rely on professional tax services.
Whether you’re choosing to itemize deductions or going with a standard deduction, it’s possible to claim deductions up to a specific amount for cash contributions made to qualifying charities. Again, if you’re not sure what’s the best way to go about this, using professional tax services can help you stay on top of your deductions.
If you normally choose the standard deduction when filing your tax returns, you might want to rethink this approach. Sometimes, your itemized deductions often exceed the standard deduction, so you can benefit more from itemizing on your return. For instance, if you have a large mortgage, then the mortgage interest tax deduction can maximize your refund. Similarly, if you have made a significant amount of charitable contributions, be sure to track them all and itemize them on your return.
There are many credits or rebates that you can take advantage of if you qualify. One prime example is the recovery rebate which you can claim if you missed a stimulus payment. There are also other tax credits like the earned income tax credit and the solar tax credit that you can benefit from.
As you can see, there are many ways to get more money back from your tax refund. Most people are not aware of these strategies, so they miss out a lot. To avoid this, it’s recommended to seek professional tax services to get the insight you need. Contact us today to discuss more ways we can help you maximize your tax refund!
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