Are you worried that you might not get a favorable tax refund this year? You are probably not the only one in that situation.
But did you know that you can take some steps to ensure that you get that tax refund that you desire so much?
Well, here are five things you can do.
1. Modify your withholding
Pay attention to the amount of money that you are withholding from your paycheck. It could be the reason why you find yourself in IRS debt.
To enhance the tax refund, shrink the allowances that you include on your W-4. The W-4 is the form that notifies your employer of the amount to deduct as tax.
Carefully appraise your allowances after significant events such as getting another job, getting married or having a kid.
2. Evaluate your filing options
You have five options to choose from while preparing your tax returns. You can either select:
2. Married Filing Separately
3. Married Filing Jointly
4. Qualified Widow or widower with a dependent child
5. Head of Household
Choose the most suitable status to obtain a favorable tax refund.
3. Get familiar with your deductions and credits
There are many tax deductions and credits that you can exploit to get a tax refund. The deductions are taken off your income before tax calculation is performed, while credits are taken off your total taxes for a specific year.
Having kids may entitle you to the Child and Dependent Care Credit.
Whatever you do, ensure that you are aware of all deductions and credits that you can enjoy.
4. Make contributions to a retirement account
You can get a tax refund if you contribute to an individual retirement account or your 401(k). You won’t owe taxes on your contributions to these accounts.
By funding your account with an amount less or equal to $6,000 before April 15, you open up the opportunity to enjoy tax refunds for the previous year. You can continue contributing if your total funds don’t exceed your annual maximum.
5. Seek professional services
Are you finding it difficult to file your returns?
Consider hiring us to help you out. We are Sun Accounting Services, a firm providing small business accounting and tax services in Boca Raton.
Our firm will provide , Tax Review, Tax Planning and e-Filling services for you.
Get in touch with our office
Our small business accounting firm is ready and eager to provide you with relevant financial assistance to give you a peace of mind.
For a free consultation, reach us on 561 504 6075 or talk to us via email.
We look forward to helping you build a future of financial freedom in every way possible.