The IRS will soon start the new tax season. Some of you may think that there is still time, but time flies and January is just around the corner. A large tax refund is what you may need in 2024 since prices are too high and mortgage interest rates are soaring in 2023.
Undoubtedly, the more money you can receive, the better it will be for your financial situation. Solodinero (Just Money) has revealed the top tips by a prestigious accountant and expert in taxes called Lisa Greene-Lewis.
First of all, you should maximize your retirement savings accounts. In this way, you will be able to make more contributions and you will take advantage of all the deductions available. It does not matter if you have an IRA or 401(k). Both of them will help you enlarge your tax refund.
Help your tax refund grow by contributing to a health savings account
HSA or Health Savings Accounts help you benefit from tax-free withdrawals to pay medical expenses as long as they are eligible. Make the most of your tax refund by deducting the contributions you may whenever possible.
Apart from that, you can maximize deductions. While some taxpayers prefer to get standard deductions, others opt for itemizing them. For example, you may want to include mortgage interest rates and property taxes.
Donating is another thing you can do. While you are helping others, you can deduct charitable contributions. As you can see, this can be another way to make your tax refund larger.
If you have just had a baby, it is time to get a Social Security number for him or her. In this way, you can take advantage of any tax credit your child may be eligible for. If the baby has a disability, you may also have other tax benefits.
Energy efficiency and your tax refund
Despite the fact that your tax refund and energy efficiency in your home may not seem to have anything in common, you could also do something about it to get more money.
Not only can you get a tax credit for improving the energy efficiency in your house, but you can also get cash if you buy an electric vehicle. Credits range up to $3,200 for homes and $7,500 for cars.
Another alternative is to deduct stock losses from the tax bill. If you were not lucky in the stock exchange market, this could help you grow your tax refund too. So, do not miss the opportunity. What is more, you may receive a tax credit for the loss of property you may have had due to a natural disaster.
Besides, you may want to ask your boss if it is possible to receive your bonus after you file. It may affect your earnings and you may end up paying more if you receive it in December. The last thing to pay attention to is the date is best to make additional mortgage payments. Perhaps, you can get a deduction if you do it now rather than next year.
