Are you one of the responsible individuals who have their taxes done by February every year, or are you a chronic procrastinator who’s left scrambling right up until the April deadline? Either way, here are some smart tools and little-known methods that will help you maximize your refund and minimize your amount due. When tax time rolls around, you’ll be glad that you used some of these clever return tips.
Check Your Filing Status
This may seem like a no-brainer, but selecting the correct filing status can greatly increase the possibility of a refund. Your filing status determines your deductions, the credits you are eligible to receive, and the amount of tax you pay or the refund you receive.
Did you know that there are circumstances where married couples filing separately can save on their income taxes? This is frequently the case when both spouses earn approximately the same amount. When you compare your tax due under both “joint” and “separate” filing statuses, you may learn that combining your earnings boosted you up into a higher tax bracket. Not good. An accountant or online tax program such as TurboTax can help you determine which status is best for your needs.