Experts reveal tax filing trick to put thousands back in your wallet
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Tax season doesn’t have to be stressful—it could mean a big payday instead. With the right strategy, you could be walking away with an extra $5,000.
Are you missing out on this game-changing filing trick?
The key to unlocking a larger refund lies in understanding the difference between tax credits and deductions.
Deductions lower your taxable income, while credits provide a dollar-for-dollar reduction in your tax bill.
Tax expert Karla Dennis emphasizes that tax credits are “always better than deductions” because they directly reduce the amount of tax you owe, rather than just lowering the income that's subject to tax.
If you're self-employed or own a business, you're in a prime position to claim deductions that many taxpayers miss.
Chris Rivera, a tax expert, advises not to overlook deductions for home office expenses, business mileage, and internet costs.
Keeping detailed records is crucial to back up these claims. Remember, every deduction you claim reduces your taxable income, which can lead to a heftier refund.
Rivera also points out that tax credits like the Earned Income Tax Credit (EITC) can be incredibly valuable.
These credits are designed to help taxpayers, especially those with lower incomes, by providing a significant reduction in their tax liability.
Make sure to check if you qualify for these credits, as they could be the ticket to boosting your return.
Your filing status can greatly affect your tax liability.
Whether you're single, married filing jointly, or head of household, each status comes with different tax brackets and potential benefits.
Ensure you're choosing the status that offers you the most favorable tax outcome.
Senior business advisor and tax specialist Abigail Wright stresses the importance of organization.
Keeping all your receipts, invoices, and records in one place can prevent you from losing track of important documents that could translate into savings.
Putting money into a retirement account like an IRA not only secures your future but can also reduce your current tax bill.
Contributions to traditional IRAs are often tax-deductible, and the savings can be substantial.
Sometimes, the best way to ensure you're making the most of your tax return is to get professional help.
Tax professionals are well-versed in the latest tax laws and can uncover deductions and credits you might not be aware of.
TurboTax expert Lisa Greene-Lewis recommends filing “as soon as possible” to get your return quicker.
The average refund is close to $3,000, but with proper planning and filing, you could significantly increase that amount.
For the self-employed, business expenses can lead to big savings.
Travel, supplies, electronics, and home office costs can all be deductible.
Greene-Lewis also points out a lesser-known deduction: if you've purchased a heavy SUV for business use, you may be eligible to deduct a substantial amount.
Tax season is a golden opportunity to review your finances and make decisions that could benefit you in the long run.
By taking advantage of credits, deductions, and strategic planning, you could see a significant increase in your tax return.
Remember, a little effort now could mean an extra $5,000 in your pocket later. So, don't let this tax season pass you by without exploring every avenue for a better return!
Have you discovered a tax tip that's been particularly beneficial? Do you have a system for keeping your tax records organized? Share your experiences and tips in the comments below.
Are you missing out on this game-changing filing trick?
The key to unlocking a larger refund lies in understanding the difference between tax credits and deductions.
Deductions lower your taxable income, while credits provide a dollar-for-dollar reduction in your tax bill.
Tax expert Karla Dennis emphasizes that tax credits are “always better than deductions” because they directly reduce the amount of tax you owe, rather than just lowering the income that's subject to tax.
Tax experts advise not to miss any deductions, especially if self-employed. Image source: Nataliya Vaitkevich/Pexels.
If you're self-employed or own a business, you're in a prime position to claim deductions that many taxpayers miss.
Chris Rivera, a tax expert, advises not to overlook deductions for home office expenses, business mileage, and internet costs.
Keeping detailed records is crucial to back up these claims. Remember, every deduction you claim reduces your taxable income, which can lead to a heftier refund.
Rivera also points out that tax credits like the Earned Income Tax Credit (EITC) can be incredibly valuable.
These credits are designed to help taxpayers, especially those with lower incomes, by providing a significant reduction in their tax liability.
Make sure to check if you qualify for these credits, as they could be the ticket to boosting your return.
Your filing status can greatly affect your tax liability.
Whether you're single, married filing jointly, or head of household, each status comes with different tax brackets and potential benefits.
Ensure you're choosing the status that offers you the most favorable tax outcome.
Experts emphasize the importance of maintaining detailed records to support claims. Image source: Nataliya Vaitkevich/Pexels.
Senior business advisor and tax specialist Abigail Wright stresses the importance of organization.
Keeping all your receipts, invoices, and records in one place can prevent you from losing track of important documents that could translate into savings.
Putting money into a retirement account like an IRA not only secures your future but can also reduce your current tax bill.
Contributions to traditional IRAs are often tax-deductible, and the savings can be substantial.
Sometimes, the best way to ensure you're making the most of your tax return is to get professional help.
Tax professionals are well-versed in the latest tax laws and can uncover deductions and credits you might not be aware of.
TurboTax expert Lisa Greene-Lewis recommends filing “as soon as possible” to get your return quicker.
The average refund is close to $3,000, but with proper planning and filing, you could significantly increase that amount.
For the self-employed, business expenses can lead to big savings.
Travel, supplies, electronics, and home office costs can all be deductible.
Greene-Lewis also points out a lesser-known deduction: if you've purchased a heavy SUV for business use, you may be eligible to deduct a substantial amount.
Tax season is a golden opportunity to review your finances and make decisions that could benefit you in the long run.
By taking advantage of credits, deductions, and strategic planning, you could see a significant increase in your tax return.
Remember, a little effort now could mean an extra $5,000 in your pocket later. So, don't let this tax season pass you by without exploring every avenue for a better return!
