Taxes are the fees charged by the government for services, activities, products and salaries. The government states how much the tax will be. The government uses the taxes as you pay as funds for financing projects for the public such as maintenance of the road and scholarship grants. Income tax is probably the most known form of tax, wherein your company automatically deducts the tax from your monthly salary. A tax refund is what you will get if the amount of tax you paid for is greater than your tax liability or what you should only be paying for the year. There are several ways on how you can maximize your tax refund.
If you want to get bigger tax refund, refer to the steps below:
- List all the deductions that you can have to have a bigger tax refund.
- Claim your house as a homestead. A homestead is a principal residence and has a tax exemption that will make your tax refund bigger.
- Child tax credit is another way to make your tax refund bigger. If you have kids living with your house for 6 months or longer, you can get a child tax credit. Even if they are not your own kids, as long as they are living in your house for 6 months or more, you can still apply for this.
- If you have a business and you needed to travel, you can get deductions for your transportation, food and your stay in a hotel as long as you have the receipts and these are for business reasons.
- Depreciated properties and assets can also help make your tax refund bigger. Depreciation means that the property or asset’s value went down which may be due to age or wear and tear.
- If you purchased any items for your business such as printer, computer, and scanner, you can add these to your deductions. Make sure that you keep the receipt and that these were used for your business.
- You can also deduct charges that are made on your online transactions like PayPal as long as it’s used for business purposes.
- If you donated for charity, make sure to get a receipt because you can use this for tax refund.
- If you’re an educator such as teacher, principal, instructors and aide, you can get tax refunds for the material you bought for work purposes such as books, notebook and computer.
- If there was a disaster in your area and you lost or damage your property, you can include this to your deductions as casualty deductions. This can make your tax refund bigger.
- You can also get a deduction if you’re moving to a new location for your new job. If your new location is 50 miles or more away from your old house and you need to relocate, you can get a deduction for the amount you used for your transportation to your new home.
Include all the things that you can deduct to get a bigger tax refund.
Make sure that these are legitimate and you have proof like the
receipts given to you for the deduction you are claiming, so that you
will not have a problem if you get audited.