4 Ways to Boost Your Tax Return for Next Year
Friday, July 22, 2016, 6:00 AM | Leave Comment
Tax season can be a complicated time for many Americans, but by spreading the planning throughout the year, you can make the IRS work for you.
Let’s take a closer look at four of the best ways to maximize the return that you receive from the federal government:
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Research the Tax Code
There are probably many IRS officials and professional accountants that have never bothered to research the federal and state tax code.
However, the IRS typically releases a brief synopsis online of changes that have been made throughout the year, and a brief glance at these changes could save you hundreds of dollars.
Perhaps there is a new deduction that you can take advantage of, or a change in eligibility for an existing deduction.
Either way, it’s money back in your pocket.
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Educate Yourself on Write-Offs
In order to maximize the write-off deductions that you are able to claim, you should really familiarize yourself with the concept before April.
If you are already familiar with the write-off process, you can keep detailed records of work and home expenditures that can be deducted at the end of the tax year. These records will make your life much easier as you are scrambling to finish by April 15.
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Donate Vehicles or Belongings to Charity
The knee-jerk reaction for most people with an unneeded car, yacht, RV or other vehicle would be to sell it on the open market.
However, donating that superfluous vehicle to charity may actually be more valuable to you in a tax sense.
Giving vehicles to charity through a company like Action Donation Services results in a guaranteed tax deduction, whereas a straight-up sale might not fetch you the proper market price of the vehicle.
Certainly something to think about when the time comes to get rid of an automobile!
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Buy Eco-Friendly Products
The government offers a variety of rebates, incentives and credits to individuals who purchase and use energy-efficient and renewable energy products.
When you buy products like EnergyStar appliances and solar panels, you can cut down on your carbon footprint and beef up your tax refund all in one fell swoop.
Businesses or residences using solar energy sources or wind energy systems are placing themselves in an excellent position to curry favor from their federal and state governments come April.
As you can see, there are several different strategies that people can pursue to make sure that their rebate is big enough to be worth the hassle of properly filing.
If you plan ahead rather than saving tax preparation until April, your check in the mail will be a whole lot fatter.
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