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.