5 Tips To Maximize Your Tax Refund
It’s that time of the year again; tax season! Most people jump for joy at the sound of it, but others may be a little stressed. Are you unsure of whether you may owe money this tax season or want to maximize your return as much as possible? Well.. you’re in the right place. Read over these 5 tips to get started on making the most out of your tax return.
Take Advantage of Free/Discounted Tax Software
Tax software is getting more and more popular as people become more tech savvy. Many find filing online to be extremely convenient and effective as the software automatically looks into many deductions that may be applicable to your personal situation. No training is needed to file your taxes this way because the software makes it very easy! Also, just for being a USMFCU member, you can receive up to $15 off TurboTax software. Find out more here
File With the Right Status
Filing as a Head of Household instead of Single could mean the difference between hundreds of dollars on your refund and yet many file as the wrong status every year. Make sure that you know why you’re filing as your particular status before you do so. Also, remember that dependents aren’t always just children. You can claim an elderly parent as a dependent even if they don’t live with you, so long as you provide more than half of their financial support. When it comes time to receive your returns, you’ll be happy that you didn’t forget to list your parent as a dependent.
Think About Filing Electronically
This step doesn’t increase your tax return, but definitely speeds up the rate at which they are returned to you! Electronic filing processes faster than paper filing. After filing electronically, people usually get their tax return within 3 weeks!
Don’t Forget About the EITC!
The EITC (Earned Income Tax Credit) is a tax credit that many people overlook. Around 20% of eligible Americans don’t claim their rightful EITC every year. This means that they’re missing out on hundreds, maybe even thousands of dollars! TurboTax automatically checks for your eligibility with this tax credit, but if you’re using other software or working with a tax professional, make sure to mention this credit to see if it applies to you.
We know that it can seem daunting at first, but keeping up with relevant receipts and expenditures throughout the year can really add up when it comes to tax season. When you’re self-employed, you may be able to write off mileage and even home-office expenses, and anyone who gives to charities or even acquires certain jury duty fees may be eligible for a deduction. Be sure to keep up with these things to make next year’s tax season easier and more effective for you.
Get Your Maximum Refund and Special Savings on TurboTax
Tax time doesn’t have to be stressful! With TurboTax, you’ll get your biggest possible refund fast and your taxes done right. PLUS, credit union members save up to $15 on TurboTax federal products, all through tax season.
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