The IRS the new one will start soon tax season. Some of you may be thinking there is still time, but time flies and January is right around the corner. Big tax refund is what you may need in 2024 as prices are too high and mortgage rates soar 2023.
Undoubtedly so much more money you can get, the better it will be for your financial situation. Solodinero (Just Money) revealed the best tips from a prestigious accountant and tax expert called Lisa Green-Lewis.
First and foremost, you need to maximize your retirement savings accounts. That way, you’ll be able to make more contributions and take advantage of all available deductions. It doesn’t matter if you have an IRA or a 401(k). Both will help you increase yours tax refund.
Help your tax refund grow by contributing to a health savings account
HSAs or Health Savings Accounts help you take advantage of tax-free withdrawals to pay for medical expenses as long as they qualify. Make the most of yours tax refund deducting the contributions you can whenever possible.
You can also maximize deductions. While some taxpayers prefer to take standard deductions, others choose to itemize. For example, you may want to include mortgage interest and property taxes.
Donating is another thing you can do. While helping others, you can deduct charitable contributions. As you can see, this can be another way to make your own tax refund bigger.
If you just had a baby, it’s time to get a social security number for him or her. That way, you can take advantage of any tax credit your child may qualify for. If the baby is disabled, 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 seem unrelated, you might as well do something about it to get more money.
Not only can you get a tax credit for making energy efficiency improvements to your home, but you can also get money if you buy an electric vehicle. Loans range up to $3,200 for homes and $7,500 for cars.
Another alternative is to deduct stock losses from your tax bill. If you haven’t had any luck in the stock market, this can help you develop yours tax refund too. So, don’t miss the opportunity. What’s more, you can get a tax credit for property loss you may have had due to a natural disaster.
You can also ask your boss if it’s possible to get your bonus after you file. This can affect your earnings and you may end up paying more if you get it in December. The last thing to consider is the best date to make additional mortgage payments. Maybe you can get a deduction if you do it now rather than next year.