Last year, the IRS issued nearly 122 million refunds, totaling more than $736.2 billion.
Maximizing your refund can be challenging, but there are many ways to maximize your tax return. Start by knowing your deductions and credits.
Properly claim children, friends or relatives you’re supporting; don’t take the standard deduction if you can itemize; deduct charitable contributions; claim the recovery rebate if you missed a stimulus payment; and contribute to your retirement or other qualified plans.
Know Your Deductions
Having the best tax software is essential to maximize your refund. The right program will help you track your information and ensure it’s accurate, saving you time and money.
Click here to find many tax software programs that offer support tools that can answer common questions and explain how to complete certain sections of your return. These may include a glossary, a step-by-step navigation bar or a live chat with a tax professional.
You can also upload tax documents, such as W-2s and investment income reports, that the software automatically imports into your tax return. This can save you a lot of time as it reduces the fields you must fill in when filing your taxes.
It’s essential to track all your deductions throughout the year. This will ensure you take advantage of all opportunities to claim them on your tax return, which can significantly boost your refund.
Once you have a good idea of what deductions apply to your particular situation, you can start preparing to file your taxes. The best tax software will help you track your expenses, identify tax credits and other deductions and calculate your tax refund.
It’s important to remember that tax laws change yearly, so having a well-organized filing system that reflects your evolving financial status is vital—using a combination of online filing. Offline recordkeeping will help you stay organized, make the most of your refund and avoid mistakes on your tax return.
Check Your Filing Status
Tax season is a busy time for many people. It’s a hectic year-long process and essential to personal financial management. The best way to maximize your refund is to file accurately, track your deductions, and monitor your expenses.
Some of the most effective tax software programs can help you save time and money by guiding you through the process. They ask questions to gather information and can automatically import information from your W-2 and 1099 forms. This makes the tax preparation process much easier and less time-consuming than manually entering data.
A good tax program will also make checking your filing status online after submitting your return easy. This helps ensure that your return is accepted by the IRS and will not be held up in the process.
In addition, a good tax software program will offer you an accuracy guarantee that the math calculations it completes are correct. An accuracy guarantee means that the tax software will not make any mistakes in calculating your taxes, increasing your chances of receiving the maximum deductions and credits.
A good tax program will also provide the latest forms and schedules. If you need a specific condition, check its release dates before submitting your tax return.
Track Your Expenses
Tax Day is approaching, and you’re looking for ways to maximize your refund. The best way to do that is by tracking your expenses to take advantage of every deduction possible.
Expense tracking software makes it easier to categorize and report your expenses on your tax return. This will help you ensure your reports are accurate and will help you avoid unnecessary deductions or tax mistakes that could lead to an audit.
QuickBooks, for example, is a full-featured accounting software program that includes expense-tracking features. It’s easy to keep track of business expenses in QuickBooks and re-categorize them when it comes time to file your taxes.
The app also lets you take photos of receipts to log them on your tax return, which is a convenient feature that can save you time regarding your final taxes.
HoneyBook is another good option if you’re an artist, as it allows you to categorize expenses in the form of commissions and subscriptions that you charge for your services. It’s also easy to assign specific project names to certain costs.
While many tax software programs offer free versions, you may consider a paid version if you have complicated tax situations like self-employment income or investments. Paying upfront can help ensure you get the best possible return on your investment and a more accurate tax return.
Schedule a Meeting with Your Accountant
There are many ways to maximize your refund with tax software. However, it would help if you considered what you are filing and your situation. For example, if you have self-employment income or itemized deductions, you must find a program to handle your complicated tax situation.
When hiring an accountant, you must research and ask for references. You also want to ensure that the firm is in business. The last thing you want is to end up with an accountant who still needs to keep up with changes in the law or the IRS’s guidance.
To maximize your tax refund, you must schedule a meeting with your accountant at least once weekly to discuss your finances. This way, you can get a clear picture of where you stand.
Before your next meeting, list all your expenses throughout the year. These should include a breakdown of each item, how much was spent on it and when it was paid for. This will help your accountant see how well you are coping with the current economic climate and what changes you need to make to reach your goals.
