Track all of your deductions

10 Tips to do Today to Increase your Refund for Next Year

by La Familia

Track all of your deductions

10 Tips to do Today to Increase your Refund for Next Year

by La Familia

by La Familia

 

  1. Change your tax status at work. W-2 employees should review your allowances that you claim at work on the W-4 form you fill out during the hiring process. The higher the number the less tax is taken out. This also means your refund will be  smaller. Reducing the number will cause more tax to be taken out but will lead to a larger refund at the end of the year.
  2. Track all of your deductions.  Keep track of everything that is tax deductible over the course of the year. There are several smart phone apps on the market that will make it easier and less amount of paper work to track your deductions but its still a good idea to keep a folder over the course of the year and refresh it every tax season.
  3. Find a better paying job. A higher income will increase your refund at the end of the year but here is the tip. You may be able to deduct expenses related to job seeking such as travel, meals, resume preparation, and career counseling service if they exceed two percent of your income.
  4. Learn new skills. The costs of any classes at the college level are eligible for tax credits of 20% of the cost of tuition. Why not take some time to learn new skills you have always wanted: carpentry, welding, or even a foreign language.
  5. Donate. Tax season is over and spring-cleaning has arrived. Get rid of old items you don’t use anymore by donating to charities. These acts of kindness are tax deductible, which will allow for a larger refund next year.
  6. Buy Property. Property investments are beneficial from a tax perspective as the mortgage interest and property tax deductions will increase your refund.
  7. Switch to Solar Energy. Solar energy is extremely helpful to the environment as you harness energy naturally from the sun. The government is now giving tax credits up to 30% of the cost of solar energy equipment. No better time to switch than now.
  8. Fund your retirement account.  Contributing to your retirement account is another opportunity at increasing your tax deductions, which will lead to a higher

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