How Can I Increase My Tax Return?
February 2, 2015 / Sara Davis / Get More on My Tax Return
Obviously you want to get the most out of your tax return. Yet you may think that without a savvy tax consultant going meticulously through your spending for the last year there is no way you will get as big a refund as you deserve. Well, you don't need the high-profile consultant because there are resources available to you to make sure you get the biggest refund possible. You just have to educate yourself a bit.
For advice on approaching tax season and getting the most you can in your refund, check these tips out:
Yes, filing your tax returns on time and early enough in case there are mistakes is advantageous. For instance, you won't have to worry about it, and there is a chance your return will come sooner. However, filing too early and in a hurry can cause you to make mistakes. And since there is a new regulation this year pertaining to health care, being in a hurry may cause you to overlook it, according to the Times Free Press.
"Less hurry for more money."
For the first time, individuals will have to report their health insurance status with their tax filings. If you purchased health care through the new federal marketplace at HealthCare.gov, then you have a bit more work to do. This change might only be a small box on the filing form if you have insurance through an employer or other private provider, but there is new paperwork for those who signed up through the marketplace.
"I've been doing taxes for 20 years, and this is easily by far the biggest change and the most complicated process to add to tax return since the late 1980s," said Joe Lautigar, a CPA and franchisee of H&R Block in Chattanooga. "It's a whole new world," according to the Times Free Press.
If for this reason and no other, don't rush through your taxes. Approach your tax forms carefully and read and check everything required, even if that means additional forms.
Don't be hesitant toward deductions
Deductions aren't nifty tricks reserved for high profile corporations. In fact, they are quite the opposite - they are in place to assist you. A popular deduction is through keeping driving logs, according to TurboTax. You can deduct miles you drive for a variety of reasons, such as volunteer work, doctor's appointments and job interviews. Additionally, this doesn't mean you have to own a car to qualify for these deductions. If you paid for a taxi or took the bus to a job interview or a doctor visit, then you can claim that on your filing.
Tax deductions are based on individual income, so everyone that includes driving credits will not receive the same return, if any. These returns differ based on marital status or if you are a student, among other factors. Deductions are not a one-size-fits-all approach to taxes, which is why many people believe they are too difficult to approach. But have a bit of confidence and look into options for deductions on your form.
You don't have to go through the tax filing process alone. But seeking help on your tax form doesn't mean it has to cost you big bucks. The U.S. Internal Revenue Service provides free services to qualifying individuals. There are software programs that will aid you in your filing process, but speaking with an individual who knows what he or she is talking about could be advantageous, especially if you are looking into deductions and other specific options for seeing more money on your return. However, if you decide to speak with someone, remember that you are not the only one, so you should do so quickly as tax season kicks into gear.
File your taxes with confidence this year whether you do it alone or with help. While a bit of research may be necessary if you go at alone, it does not have to be a difficult process. Everyone in the country has to go through tax season and everyone wants the largest amount in return. Slow down, know what you are filling in, ask questions if you need to and send your forms off. All that's next to do is wait and decide what you are going to spend it on.