Unless you’ve been super busy and received extra time to handle your personal tax return filings using ExpressExtension, you have received your 2018 tax refund. If you are looking for ways to increase your tax refund next year then you have come to the right place. We’ve done some research and have a few tips on how to increase our 2019 tax refund starting now.
How To Increase Your 2019 Tax Refund Starting Now
Adjustment Withholding Allowances
One of the easiest ways to receive a higher 2019 tax refund is by adjusting your withholding allowances. While reducing allowances increase your income tax withholding, this means that your paycheck will be less, but the payoff in the following spring is much greater than having to owe taxes to the IRS.
Adjusting withholding allowances is easy as simply asking your HR department for your W-4 form and finding out how many allowances you should take to receive a higher tax refund.
Staying organized is the main key to successful tax filing and helps with managing tax deductions. An easy way to track deductions is by simply creating a file or folder labeled “Current Tax Info” and store any tax-deductible transactions you make throughout the year.
Standard deductions for college courses, student loan interest, childcare, charitable donations, and more, can be deducted if you have a record of the transaction. Self-employed individuals can also track mileage, income, expenses, etc.
Save, Save, Save!
Saving money throughout the year is a challenge for some, but easy for others. Consider investing in your retirement fund early on. You can contribute up to $18,500 in your retirement for 2018, or $24,500 if you are 50 years of age, and lower your taxable income.
Self-employed individuals have the opportunity to contribute to a Simplified Employee Pension (SEP) IRS for as much as 25% of your net earnings or up to $55,000 for 2018, and your contributions can be deductible as a business expense. Contributions of up to $5,500 towards your IRS will receive a tax deduction for this contribution.
Note: Those who contribute to their retirement may be eligible for the Saver’s Credit which is worth up to $1,000 ($2,000 married filing jointly).
Make a Donation to Charity
Take a few moments to do some “summer cleaning” and make a donation to charity. Deductions can be made for the fair value (thrift shop value) of the household goods you no longer use. Keep a record of each donation and report it as a deduction when filing.
Ready, Set, Go!
The path to increasing your 2019 tax refund starts now! Take advantage of the free time you have this summer and use these tips along the way.
If you need more time to file your income taxes for 2019, simply e-file Form 4868 with ExpressExtension and you will receive an automatic 6-month extension of time to file your individual income tax return.
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