Hate owing taxes at the end of the year? Prefer to have peace of mind? Want a bigger refund? As a general guide, the best tax return is a return where you actually owe a little money. Sure, we love to see refunds. The reality is a refund generally means you loaned some money to Uncle Sam during the year, and you’re just getting it returned to you.
But if you don’t want to think about saving money during the year to pay a tax bill during tax time, prefer a bigger refund, or simply want that extra peace of mind, here are three ways to help you get more money back on your taxes.
1. Increase Your Withholdings
Withholding means the amount of taxes taken out of your pay check for federal and state taxes. Your employer may already be withholding taxes from your paycheck, but you can opt to have more taxes taken out. If you know how much you want to get back at the end of the year, start planning now. For example, if your goal is to get back $2,500, you can opt to have an additional $25 – $100 taken out of your salary each pay period. You can see the savings each time you get look at your paystub. You can increase or decrease the amount at any time, as your job permits.
Use a W-4 calculator, such as the one at Taxbrain.com to get an estimate. Once you calculate your withholding allowances, get with your employer and complete a new Form W-4 (Employee’s Withholding Allowance Certificate) if you’re going to make any changes.
2. Become Familiar with All Qualified Deductions
Get the credits and deductions you are entitled to receive. If you have children in childcare or college, you can take these deductions. Parents can deduct their childcare expenses, and parents with students in college can deduct their tuition payments. Own a home? Take advantage of home energy credits available.
3. Stay In Tune with the New Tax Laws
The law is constantly changing. Each year the amount of deductions and credits tax filers are entitled to may change. If you want to get the most tax refund back, you need to stay abreast of the tax modifications. Did you know that alimony payments are tax deductible? Moving and traveling expenses can be deductible too. Starting a new home business? There are deductions you can take for that as well.
Want to know how much refund to expect at the end of the year? Use Taxbrain’s free tax refund calculator and get an estimate now. Follow the calculator’s six simple steps. You will get a good estimate on how much of a refund you will receive.
Taxbrain offers customers an exciting and better way to figure their taxes and get more money back at the end of the year. Tax season is almost here and millions of people will be filing their taxes for the first time. If you are a first time filer and are looking to get your taxes done, we can help. We offer free, unlimited customer support to guide you through the process. You might have been happy getting the minimal refund amount back each year; wouldn’t you love it if you could substantially increase your refund?