Tricks To Maximize Your Personal Refund
When it comes to taxes, most people look like they would rather beat their head against a wall until they are unconscious than have to deal with all the paperwork and all the math and receipts that they need to file their taxes. Taxes can often feel like just another way to keep you from your hard earned money.
Because taxes are the bane of a lot of people’s existences, they often want to spend as little time as possible thinking about filing them which can end up costing them in the long run as they find themselves not taking advantage of all the deductions, credits, and other strategies that can be utilized to minimize how much you owe and maximize your PERSONAL refund.
State and Local Tax (SALT) Deduction
With this deduction you can include property taxes, state income taxes, and even sales tax. Most people forget to include all of the eligible state and local taxes, missing out on big savings. This deduction is capped at $10,000.
Charitable Contributions
Donating to charities can help save you some money. Not only can you claim cash donations, you can also claim non-cash donations such as clothing or household items, and can even count your mileage that you used for charitable purposes. Make sure to keep receipts and records and get a deduction.
Medical Expenses
Do you have medical expenses that exceed 7.5% of your adjusted gross income (AGI)? You can deduct not only doctor visits and prescription costs, but also dental care, vision, and even medical related travel expenses. It is an often forgotten deduction as it’s easy to overlook or not keep adequate records to claim the deduction.
Student Loan Interest Deduction
Even without itemizing your deductions, recent graduates or their parents can deduct up to $2,500 of student loan interest paid. Often this is overlooked as it is ‘above the line.’
Home Office Deduction
If you work from home and have a place in your home used exclusively for your business then you might be eligible for a home office deduction.
Education Credits
The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) are credits that you can use for qualified education expenses for you, your spouse, and your dependents.
Earned Income Tax Credit (EITC)
This credit is available to low to moderate income taxpayers. Eligibility for this credit is based on income level and number of dependents. However, many people miss out on this credit because they don’t believe they qualify for the credit.
Saver’s Credit
This credit is available to people who contribute to a retirement account such as a 401K or an IRA. These credits can be up to $2,000 or $4,000 for married couples.
Child and Dependent Care Credit
If you paid for childcare or for care for a dependent so you could work, this credit can cover some of your expenses.
Job-Related Moving Expenses
While for most people this no longer applies, if you are an active-duty military member who moved due to a military order, you can still claim this deduction.
Most of these credits and deductions end up going unused or overlooked, either because people don’t know about them or because people don’t realize that they qualify for these deductions and credits. (These deductions and credits are for personal taxes, not business taxes).
Irvine Legal can help you plan for tax season to help you get the biggest tax refund available.
385-333-7966