The taxing season is upon us, and it’s time to start thinking about how to get the most out of your tax refund. If you’re like most people, you want to get the biggest refund possible. But it doesn’t usually work out that way.
The IRS says the average tax refund is about $3,000, but there are ways to increase your chances of getting a bigger refund. You might be wondering if such tricks are available to you. Luckily, we’ve got 10 tips that might help you get a little extra back from the IRS this year.
1. Check your withholding.
The amount of money withheld from your paycheck for taxes is essential in determining your refund. If you had too much money withheld, you would likely get a refund. But if you didn’t have enough withheld, you may owe money to the IRS.
You can use the IRS Withholding Calculator to help you figure out the right amount of money to have withheld from your paycheck.
2. Review your tax deductions.
Several deductions and credits can reduce your tax bill and increase your refund. Reviewing these deductions and credits can help ensure that you’re taking advantage of all the tax breaks available.
3. Get organized.
Preparing your taxes can be much easier if you’re organized throughout the year. Gather all your relevant documents, including your W-2 form from your employer, 1099 forms for any other income you received, and receipts for any deductions or credits you plan to claim.
4. File electronically.
Filing your taxes electronically is the easiest and most accurate way to file. The IRS offers several e-filing options, including its Free File program, which is available to taxpayers with incomes of $66,000 or less.
5. Request an extension.
If you cannot get your taxes done by the April deadline, you can request a six-month extension from the IRS. However, even if you get an extension, you’ll still owe interest on any due taxes and may be subject to late-filing penalties.
6. Pay your taxes on time.
If you owe money to the IRS, paying your taxes by the April deadline is essential. If you don’t, you’ll be charged interest and may be subject to late-payment penalties. You can make a payment online, by phone, or by mail.
7. Check your math.
One of the most common mistakes on tax returns is incorrect math. Be sure to double-check your calculations before you file your return to avoid any problems.
8. Use direct deposit.
If you’re expecting a refund, you can have the money deposited directly into your bank account. This is the quickest and most convenient way to get your refund.
9. Monitor your account.
If you’ve filed your taxes electronically, you can check the status of your refund online or by phone. The IRS also offers a mobile app that allows you to check the status of your refund on your smartphone.
10. Be cautious of scams.
Be aware that there are several tax-related scams, including phony emails and phone calls from scammers posing as IRS representatives. The best way to avoid these scams is to be Vigilant and only give out personal information to trusted sources.
Following these tips can increase your chances of getting a bigger tax refund this year. And who doesn’t want that?