January 29th marks the date when you can file your taxes, so it’s time to find the secrets to a higher tax refund. The tax bill recently passed and added many changes that you need to be aware of, along with a few ways to increase your refund in 2018, whether you do your taxes yourself or go with a tax service professional.
Adjust Your Withholdings
You filled out a W-4 when you first started your job, but have you revisited it since then? The tax brackets are changing in 2018, so this is a prime opportunity to reevaluate whether you need to switch things around.
Take the Correct Personal Deduction
You get a higher personal deduction in 2018. When you’re filling out your forms, don’t default to the deduction that applied to 2017 or you leave refund money on the table.
Reconsider Married Filing Jointly
Married filing jointly is the right choice in most circumstances, but you may want to reconsider it if you have a lot of itemized deductions that exceed the standard deduction amount. ATC tax service experts can compare both methods if you and your spouse have itemized deductions to determine the best course of action. If you fall under the 10% to 12% tax bracket and have young children, you may want to reconsider filing separately because you loose refundable credits such as Earned Income Tax Credit and/or Additional Child Tax Credits.
Max Out an IRA
Saving for retirement is more than a sound financial decision for your future. This move also makes it possible to increase your tax refund by lowering your taxable income. If you’re in a higher tax bracket and don’t typically receive a refund, the contribution will allow you to lower your tax liability. The best part is that you can contribute to this account beyond the end of the year, giving you more time to reach the cap.