Tax filing season may have just begun on January 28th, but it’s never too late to begin filling out and filing your taxes so you can get your tax return! If you’re looking for ways to get the biggest possible tax refund, follow these simple tips and advice!
[Read More: 4 Smart Ways to Spend Your Tax Refund!]
Claim All Available Deductions
Deductions are subtracted from your adjusted gross income, which means your taxable income will be lower and you’ll save some money. Be sure to not overlook any deductions you may be eligible for including medical costs, prepaid interest on a mortgage, education expenses and charitable contributions. Make sure, though, that you claim deductions for organizations with tax-exempt status with the IRS.
Use the Best Filing Status
Make sure that when you file, you’re using the correct and best filing status for yourself. Your relationship status on December 31st, 2018, determines your filing status for the entire year. If you’re married, calculate your taxes using both the Married Filing Jointly status and the Married Filing Separately to see which one works best for you.
Build Your Retirement Savings
One of the best ways to save in the present and in the future is by contributing to a 401k plan offered by your employer. Contributions are taken before you pay taxes so the IRS won’t tax money you put into your retirement savings. You get taxed less now and build your future. It’s a win-win!
The most important thing, above all else, is making sure that you’re prepared. With the tax code changing for the first time in 30 years for 2018, there can be some confusion about filing. Give yourself plenty of time to sort through all your documents or seek help from a tax professional. Don’t wait until April 15th!
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