How to Boost the Size of Your Tax Refund

Would you like to increase the size of your income tax refund…or maybe just ensure that you get one in the first place? If so, you’ll be glad to know that there are several highly effective strategies that can help you to do just that!

Fewer Allowances = A Bigger Refund

If you’re looking to increase the size of your tax refund, then, when you fill out form W-4 for your employer, you will want to consider claiming fewer allowances. This is because, the more allowances you file, the less money you’ll see come income tax time.   

Of course, allowances do mean you get a larger paycheck throughout the year, but if you’d rather get a nice lump sum come income tax time, declaring fewer allowances is the way to go.

Go for the Earned Income Tax Credit (EITC)

One of the very best options out there for decreasing how much you owe in taxes and thereby increasing the chances of getting a sizable refund is the earned income tax credit. This credit is available to moderate to low-income individuals who:

·         -Have a social security number

·         -Are a U.S. citizen, a resident alien for at least a year, or a non-resident alien who is married to an American citizen or resident alien

·         -Are not a claimed dependent

·        - Have some type of income

You can file for this credit when you file your yearly taxes, but if you need help or have questions about it, be sure to ask an accountant or financial adviser for more information.

Consider a Change in Filing Status

Sometimes, people can easily fit into more than one tax filing status. If that’s you, it is a smart idea to go over your possible options to determine which one is the best fit for you and which one is going to benefit you the most.

There is a good chance that, if you haven’t chosen the right one, you may be getting less of a tax refund than you possibly could. To learn more about the different filing status options and to ensure you choose the very best one for you, speak with a financial professional.

As you can see, there are a great many things that you can do to increase your chances of getting a nice-size refund come tax time. Follow these tips and get professional tax assistance where needed, and you’re likely to enjoy a big, fat check this year!

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• What’s New With the Earned Income Tax Credit? (turbotax.intuit.com)

Even Astronauts Pay Taxes

It’s been said that there are two things no one can escape: death and taxes. That statement holds very true; in fact, it’s so true that it even applies to astronauts who are orbiting above Earth. And, believe it or not, orbiting astronauts are still required to meet the annual April 15^th deadline, just like everyone else.

Leroy Chiao is a great example of how tax law knows no bounds of time or space. Chiao is a NASA astronaut, a commander, and in 2005, he had to file his taxes even though he was currently in space! Luckily for Chiao, his sister- still on Earth- is an accountant, so she pulled some maneuvers and filed to have his return deadline extended.

Chiao returned to planet Earth nine days after the tax deadline and dutifully filed his taxes. For astronauts who, unlike Chiao, don’t have accountant sisters, there are other options. Many choose to file taxes early, before they go on their missions, or they file for extensions before they head into space. Others have friends, family members, or spouses (on Earth) handle their taxes while they’re gone.

The bottom line is that, if astronauts who are in an entirely different realm can manage to file their taxes on time and, in fact, are required to do so, so are you! If you know of circumstances, such as traveling abroad, that would make it difficult for you to file on time, file for an extension or, better yet, leave your taxes in the hands of a capable accountant. Obviously, if being in space isn’t a good enough excuse to skip out on taxes, there really is no circumstance that should prevent you from doing so either. Get yourself an accountant so that you can always file on time, no matter where you happen to be.

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• Astronauts explain why it's important that you, yes you, go into space (polygon.com)