Ahhhh tax season. It's not a season where you'll find people decorating, buying gifts, or actually celebrating, but it's one that all working Americans must participate in if they want to stay on the up and up with Uncle Sam. Tax season is that time of year when you find yourself sifting through a mountain of receipts and donation slips in hopes of getting back the most money possible. But if you're tax information challenged like me, you may wonder: What's the biggest tax refund you can get? Because even though the number is different for everyone, there are tactics you can apply to max out that number and get yours this tax season.
According to the website for the IRS, the national average for tax refunds is $3,120. Whether you fall above or below that number, you want to make sure that you are squeezing every penny out of this deal. Discovering ways to up your refund number may be easier than you think, and trust me, it's totally worth the little bit of extra work you may need to do. Just think of what you could do with those extra dollar dollar bills, y'all! I vote shoes, but that's just me.
Before you send that paperwork in, see if you can use any of these ideas for increasing your tax refund and getting the most money back.
1. Learn About Credits
Each year, the government offers tax credits for a number of different things. Applying these credits can increase your refund, and all you need to do it check and see if you qualify. A few examples of these credits include: adoption expenses, college tuition, and expenses for elementary and secondary educators.
2. Stay Ahead Of The Game
Getting checks in for certain things before the new year could mean more money in your pocket at tax time, according to Turbo Tax. Among the ways to increase your return are paying a month ahead on mortgage and property taxes. Staying ahead in the tax game will pay off in the long run.
3. Perfect The W-4
When filling out your W-4, you may not be aware of which choices will mean more money. But using a W-4 withholding calculator will certainly help. Follow the simple steps, and the calculator will help you understand the best way to complete this standard form.
4. Claim Dependents
Navigating through what qualifies as dependent care credit can be tricky. But to make sure you are claiming all that you can, review what qualifies as the child dependent care tax credit and see what you can add to your deductions.
5. Consider A Sales Tax Write Off
Depending on which state you live in, you may want to consider deducting state and local taxes for some of your purchases. The IRS provides this sales tax calculator, which is a handy tool if you think this might help increase your refund.
6. Know What Deductions You Can Take For Charitable Donations
Your charitable contributions can be used as tax deductions when you file. But just like everything else, there are certain rules and requirements for filing charitable deductions that you should familiarize yourself with before starting on your taxes.
7. Take Advantage Of The Moving Expense Deduction If You're Eligible
Did you move in order to take a new job? Then you may qualify for a one-time deduction to cover your moving expenses. Even the gas you used to drive to your new city can be included in this sweet deal.