# 6 Ways to Get a Bigger Tax Refund. 1. Turn to the pros With all the tax preparation apps available these days, it has become easier than ever to file your own taxes. But paying a tax professional $100-$500 can really pay off if they can boost your refund by a thousand or more. Tax pros are savvier about which deductions, filing status, and credits will work in your favor. And as tax laws change frequently, and credits and allowable deductions come and go, a professional has kept up with these changes and how they affect your cash flow. If youd like to meet with a professional, do it as soon as you can as were already well into their busy season. This meeting will be particularly valuable if you had any major changes in 2013, such as starting a business or side business. 2. Know your expenses Racking up all your deductible expenses is the most effective way to bring down your taxable income and overall tax bill. 3. Get savvy about your filing status Most people don’t think twice when they check their filing status (i.e. single people file as an individual and married couples check married-filing-jointly). However, your filing status can significantly impact your refunds size, so it’s good to make an informed decision. If you are married, its smart to calculate your taxes both as a joint return and as married-filing-separately and see which gives you a better result. Yes, this process is more time-consuming (particularly if you are doing taxes yourself), but it can really pay off. If youre using tax prep software, check to see if it will automatically calculate your taxes using both methods. 4. Think about extra IRA contributions While it’s typically too late by now to make any financial moves to impact your 2013 return, IRAs are one exception. You have until April 15, 2014 to make any contributions to a traditional IRA and Roth IRA and have them apply for the 2013 tax return. Of course, you need to be within your allowable limit for max contributions for the year. If you have a qualified 401(k) plan, the deadline for all contributions was Dec. 31, 2013. 5. Add up your charitable contributions If you are itemizing your deductions, dont forget to include any charitable donations made throughout the year. Its easy to remember any big donation, but your little philanthropic gestures can add up too. 6. Dont forget the credits While deductions work by lowering your taxable income, credits have an even bigger impact. That’s because every dollar in tax credits equals a dollar in refund (or one less dollar you need to pay in taxes).
Posted on: Thu, 06 Mar 2014 06:18:38 +0000
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