Tips for Increasing Your Tax Refund

For many people, tax time is the best time of the year. It is a time when they get huge refunds due to having overpaid their taxes throughout the year. And, while getting that big refund check is certainly wonderful, you should know that there are ways to make it even bigger and better.  

Increase Your Withholdings

If you would like to see a bigger tax refund than you currently are, take yourself down to the human resources department of your employer. Once there, ask to see and edit your W-4 tax form, the same form that you filled out when you first got hired.

By opting to reduce your exemptions on that form, you can increase the amount that is withheld from your check each pay period, thereby leading to a bigger refund come tax time.

If you’re not sure where to cut exemptions or how, don’t worry. A tax professional can give you solid advice to follow before you head to human resources.

Consider Adopting a Different Filing Status

Once you are married, you might think that you will catch a lot of tax benefits by filing jointly. However, in some cases, you will actually be better off if you file separately.

This can take more time and effort than filing a joint return, but it’s often worth the extra effort due to the benefits.

If you think this could be a smart option for you and your spouse, talk to a tax professional to see if, in the long run, it would be the best choice for you and your family.

Consider the Dependent Care Credit

Finally, if you are not taking advantage of the dependent care credit, take a moment to see if you may be eligible for it.

If this credit is applicable to you, then you could claim up to $3000 for dependent care expenses for one dependent or up to $6000 for two or more dependents.

There are, of course, some eligibility requirements to meet, but if you work with a tax professional to ensure that you meet them, there shouldn’t be a problem.

As you can see, there are all kinds of ways (these are just a few of many) to boost your income tax refund. To learn more about how refunds work or how you can improve yours, don’t be afraid to contact the experts at Lewis CPA.