If you’re like most people, you probably want to receive the largest tax return possible this year. To make sure this happens, you might want to try out these four uncommon strategies as you get ready to do your taxes.
- Know Your Expenses. Acquiring deductible expenses is one of the best ways to reduce your taxable income and ultimately increase your tax return. However, it’s essential that you know which deductible expenses you incurred throughout the year that you can claim. For example, if you are a student, you may be able to deduct some tuition-related expenses on your taxes. Or if you work from home, you may be able to deduct expenses for your home office.
- Rethink Your Filing Status. Most people don’t think twice when they go to select their filing status on their taxes. However, how you file can significantly impact your tax refund. For instance, if you’re married, you may want to try calculating your taxes jointly and as married-filing-separately to determine which one provides a larger return.
- Don’t Forget About Credits. Credits, as opposed to deductions, have an even bigger impact on your taxes because every dollar in credit equals an extra dollar on your tax return. Don’t forget to research what credits you may be eligible for before you start your taxes.
- Turn to Us. One of the best ways to enhance your tax refund this year is to work with us at Cathy E. Parker, E.A. Bookkeeping & Tax Service. We are highly knowledgeable about what credits and deductions you can claim on your taxes and keep up with tax changes that could impact your personal situation.