How to Get the Most From Your Tax Returns
It’s tax season, and for some of us the government will be adding a little green to our pockets; others may not be so lucky. Either way, filing your taxes correctly is vital in ensuring you get the biggest refund possible, or cutting down the amount you have to pay in. If you haven’t already filed, we suggest you take the following tips under consideration before you do. Once you do file make sure to come into any of our 24/7 locations to cash your refund check!
Take Advantage of Deductions
Deductions are your best friend when it comes to filing taxes. The standard deduction is the easier route in most cases, but if you keep a good record of your finances, than itemizing your deductions may prove to be more profitable. There are tons of expenses that can be counted as deductions; it just takes researching which ones apply to you. Expenses related to higher education, the cost of moving, charitable donations, and even specific medical expenses all can be deducted. Make sure to educate yourself on all that may apply to you before filing.
Choose the Correct Status
Choosing the correct filing status is crucial to getting the highest refund possible. A big misconception about filing status is that you either have the option to file as married or unmarried, and the married individual will get the most tax benefits. If you are a single parent, or support another person, then you need to file “head of household”. This status will aid in more advantageous tax rates and get you a larger refund. For those who are married, make sure to run the numbers as filing separately and as married. There are instances where you can actually get more of a combined refund when filing separately.
Earned Income Tax Credit (EITC)
This is a tax credit many don’t even realize they qualify for, so they do not take advantage of it. If your income was substantially low for 2017, then you may be eligible for an Earned Income Tax Credit. This will lower the amount of taxes owed. Even if you don’t owe anything, it can still boost your refund. Below is a breakdown from the IRS of how much you could get back when using the EITC.
Maximum Credit Amounts for 2017:
- $6,318 with three or more qualifying children
- $5,616 with two qualifying children
- $3,400 with one qualifying child
- $510 with no qualifying children
For more information on Earned Income Tax Credit, click here.