How To Get More Return on Your Taxes

Tax season is that dreaded time of your when people close their eyes when finding out whether they will receive a return, or have to pay more. But it doesn't have to be a guessing game. There are ways to ensure that you always get a tax return. In fact, here are 5 little tips that will help you get even more money back the next time you are doing your tax return.

If you want to learn about a legal loophole to save lots of money on taxes (possibly thousands), check out the Ultimate Tax Reduction Guide.

1. Make donations. Giving your money away may seem counterproductive, but it has its benefits in the long run. Even giving small amounts to various organizations can really add up throughout the year. But it is important that you get a receipt outlining the value of your donation so you can prove your generosity to the tax man. And it doesn't have to be only money. Your local library often accepts donations of books and media, and they can provide you with a tax receipt upon request. As well, a donated vehicle can net you hundreds of dollars on your tax return, often more than you would get for it at a junk yard. Consider what you can give away and you'll be surprised the return it can bring you.
2. Maximize your retirement contributions. Money allocated to your retirement fund (RRSP or 401K) is tax refundable. So the more you put it, the more money you'll get back on your return. Pretty simple. If you find lump sums too difficult, consider automatic weekly withdrawals from your bank account. Often, you employer will also give you the option to have contributions taken directly from your pay check. Take advantage of this!
3. Deduct your home office. If you work at home and you're self-employed, you're likely eligible for this deduction. While there are certain criteria that define a true home office, many people take advantage of this every year. Don't be one of the uninformed ones who don't!
4. Get some money back from college. If you've got a child in college, you're eligible to claim a certain amount of their tuition. It's tax deductible. Even some personal educational expenses are tax deductible (for example, if you decide to take a night course, you can claim the tuition and textbook fees). Even some student loans have portions that are tax deductible.
5. Consider a child-care credit. A child care credit is different than a deductible expense. The amount you spend on childcare is deducted from your taxable income, dollar for dollar. With a lower taxable income, you'll be taxed on less, and that's not something to look lightly on. It can add up to thousands of dollars over the course of the year.

There are many tricks of the trade when it comes to getting the most out of your tax return. Of course, make sure you have everything well-documented so there'll be no trouble with the tax man. And while these are only a few tips, they should give you an idea of the types of steps you need to take now in order to see more money in your pocket next spring.