When tax season comes around everyone gets excited about getting a big refund. However, a big refund is not always good because it could mean that you just loaned Uncle Sam some money that interest was not paid on.
Today, we are going to discuss how you can boost your tax refund now though, so you can keep more of your hard-earned money in your pocket.
Solar energy is efficient so the government rewards those who install solar energy systems and geothermal heat pumps with a 30% tax credit. There is no limit on the credit and this credit will be valid until 2016.
Adults are focusing on education now more than they have in the past to update their skills, try something new, or even start a new career. Regardless of the reasons why you may be considering going back to school, you may be able to get the Lifetime Learning Credit or American Opportunity Credit if you have a moderate income.
Furthermore, you can claim up to 20% of your tuition expenses or up to $2,000 in tax credits. You do not even have to get a degree; any college level classes are eligible.
Many Americans want to have better jobs that pay them more money. The IRS appreciates this and they allow deductions for travel, meals, calls, resume creation, and career counseling that is considered job related, as long as it does not exceed 2% of your income.
The best part is even if you do not end up getting the job you are still eligible for this deduction. If you are someone, who works two jobs the commuting costs between them can be deducted miscellaneously too.
Investing in Your Future
Contributing to an IRA can boost your tax refund along with your wealth. The IRS gives you until April 15 of the following year to contribute and the money grows over a longer period. Furthermore, if your employer matches you and you are years away from retirement you can save on taxes in the long run since when retirement kicks in you will not be taxed on the earnings.
Getting married at the right time can be ideal. If both partners work, you may have to pay more taxes yet if you marry in January instead of December, you will pay less money. However, if one person is the breadwinner, the other will pay less, as long as you file married filing separately.
If you use TurboTax, they will be able to ask you a few simply questions to help you come up with a solution that is ideal for your unique tax situation. You may also be able to save some money with this TurboTax discount coupon.