It's tax season once again! If you've been a long time reader of the Atlas Credit blog, you're hopefully already set for a fantastic financial gain in 2020.
Still, you never know when you might find yourself worried about your financial future. But when it comes to filing your taxes, there are always ways to come out ahead.
So take advantage of the many opportunities you have to increase your tax refund now and in the future. Check out these tips for boosting your income tax refund potential from now on!
How to Get More Money Back on Your Taxes
Correct Your Filing Status
Year to year, it's easy to trust tax software that saves your records from the previous year to get everything right this year. However, if you've had any major changes to your life in the time since you last filed, you may qualify for new tax refund benefits.
For instance, if you were married, divorced, or lost your spouse, you may be eligible for a larger refund. Conversely, if you have a spouse that has high medical expenses, is behind on student loan payments or child support, you may want to file separately from them to ensure a higher refund for yourself.
Remember Your Deductions
Do you frequently give your time to charitable purposes? It doesn't matter if you aren't writing fat checks to charities -- if you simply help out those in need (people or animals!), you can add up that time and money you spent and deduct them from your taxes at the end of each year!
Also, in the state of Texas where you aren't required to pay state income taxes, only federal, you're able to deduct the taxes you paid on large purchases -- as long as the tax isn't higher than the state's typical sales tax rate. Remember to list anything major you purchased over the course of the year, and use the IRS website's great tax calculator to help you with your deductions!
Take All Your Tax Credits
How to increase your tax return when you file your own taxes? Make sure you have taken all the credits you are entitled to enjoy. The federal government offers citizens a number of ways to reduce their tax burden. For instance, if you have children and you pay for them to go to daycare while you work, you can receive a credit. You also earn credits for education expenses.
Look over your return to ensure you haven't missed any other potential bonuses, such as the Earned Income Tax Credit, which is for working people who make low incomes. If you aren't sure if you qualify, you can look at the IRS's website to learn more. You also could consult a tax professional to discuss your possible tax credits.
Looking to the Future
Alter Your Exemptions
If you're a full-time employee, you undoubtedly filled out an IRS tax form known as a W-4 when you were hired. Depending on how you filled out your form, you'll have a specific amount of money withheld from your paycheck and paid toward your income tax.
On your W-4, you're able to claim certain exemptions. The fewer exemptions you claim, the more money is withheld. If you love receiving a large income tax return each year, one of the best ways to increase it is to reduce the total exemptions you claim. Go check with your HR department and see if you're able to make such changes — then 2020's tax return will be significantly larger!
Contribute to Your Retirement Fund ASAP
The IRS actually likes it when you increase the amount of money you put into your Roth 401(k) account each year. If you're employed full-time and your company offers options for your 401(k), you can deduct the amount of money you contribute to it from your income tax.
That money remains tax-free until your retirement, so it's by far one of the easiest ways to guarantee better financial results for your future.
Invest in Green Home Improvements
Another one of the ways to increase your tax return that some people don't know about is to invest in energy-saving home improvements around your house. The government encourages such upgrades by offering you tax credits when you switch to more efficient systems. Consider some of these changes:
- Solar water heaters
- Solar electric systems
- Wind energy turbines
You can get a personal loan to finance these upgrades and save money on your taxes. You will also reduce your energy bills, which can lead to additional savings for many years to come.
Sometimes you need more than just a few ways to boost your tax refund potential. If you just found out that your tax season is going to be a lot more expensive — or that you'll simply be receiving a far smaller refund than expected — you might benefit from a quick and easy personal loan from a lender like Atlas Credit.
Even if you have bad credit or no credit at all, apply online or in-store at one of our many Texas or Oklahoma personal loan locations to see if you qualify!