Everyone wants to get the most out of their tax refund. However, they may not know how. Most people, frustrated with tax forms, will just take the easiest way out so they don’t have to deal with the complicated tax code. However, the more work you put into filing your taxes, the more you might get back for your federal refund status. Here are some tips for maximizing your federal tax refund status:
One place to start to try for a higher federal refund status is at work. See if your employer will let you take advantage of Health Savings Accounts and Flexible Spending Accounts. These accounts are part of your medical insurance. They allow you to spend pre-tax money on medical expenses.
You are charged for these expenses either way, so you should use them to avoid paying taxes on this medical spending. This can lead to a better federal refund status come tax season.
Do you have any student loans yet unpaid? If so, you can write up to $2,500 of interest paid per year. IRA contributions can also be written off up to $5,000 for both you and your spouse.
Do you do any charity work or volunteering? Make sure to write down any expenses, including gas. Also be sure to save receipts. Anything you use for charity can be deducted, too. If you bought some poster making material for a food drive, be sure to deduct it! These charitable donations can make a huge difference in your tax refund status.
One of the best steps you can take to maximize your federal refund status is to itemize your deductions. Often taxpayers will simply take the standard deduction because it’s easier. However, taking the time to itemize can lead to a much great refund status.
If all else fails and you just can’t seem to raise your federal refund status, consider consulting a tax attorney. They will often be able to find little corners to cut you would never even think of. They also should be well versed in all deductions you can take. They may be able to help you get the high federal refund status you want.
Be sure to do research before signing on with a tax attorney, though. Ask for referrals or read reviews online to see which one is best. While a reputable tax attorney may be costly, he or she can also often maximize your federal refund status.