Update for tax year 2015
There is something very satisfying to receive a big fat refund from the IRS.
your boss refuses a big slice of your salary every month for federal and state taxes, and now is your chance to get some of that cash back.
If your goal is to get the largest possible tax refund, follow these 9 tips:
Increase source
When you start a new job, the HR department has you fill out a W-4 form to determine if you are single, married or have children.
Most people in your household, plus allowances or exemptions you can claim.
If you want to increase your chances of receiving a refund in the spring, say HR to drop one of your exemptions and retain more money each month.
deduct all donations
itemized deductions are a great way to reduce your taxable income.
The IRS allows you to deduct up to 50% of your taxable income in charitable donations to tax-exempt organizations.
These include religious organizations, community groups, charities, colleges, hospitals, non-profit and more.
deductible contributions include cash, personal property, shares and securities, and the same expenditures by volunteering
Board Bonus :. to track your donations throughout the year to help maximize your deduction for cash, excluding cash and recurring donations to tax time, download the gift Assistant® by TaxAct.
professional expenses
Another itemized deduction is useful for job-related expenses. If you pay expenses out of pocket related to your work - and your boss does not pay you -. You can deduct these expenses from your taxable income
Examples include cell phones and laptops for work, dues to professional organizations, uniforms and work clothes that you wear outside work, travel and mileage to meet clients (sorry, your daily commute does not count).
Check your filing status
IRS offers various standard deduction amounts for different statuses of deposit tax on income.
In general, married couples who file jointly can apply twice the standard deduction for single filers and married couples filing separately.
If you're a single filer, check the status of head of household filing criteria, which will give you a larger deduction.
remember family obligations
you can deduct a number of expenses related to your immediate and extended family.
If your child goes to day care so that you and / or your spouse can work, you can deduct childcare costs from your taxable income
The same is true for expenses related to care for an elderly parent or relative. If you pay alimony to a former spouse who is deductible, too.
Many medical expenses out of pocket for your family are deductible, but not health insurance premiums.
Increase IRA contributions
you can deduct all contributions to a traditional IRA if you are not also covered by a retirement plan at work.
The annual contribution limit in 2015 is $ 5,500 ($ 6,500 if you are over 50). Note that high earners can deduct a portion of their IRA contributions.
refinancing your home
The IRS allows you to deduct all interest paid during the year on a home mortgage.
By refinancing your mortgage, you restart the payment process, which means that more of each mortgage payment is pure interest.
more interest means more income deductible.
Use the current tax laws
Congress is always tinkering with the tax code to encourage different types of positive economic and social behavior.
You can earn tax credits, for example, by making upgrades energy efficiency in your home or buying a hybrid vehicle.
Subscribe to blog TaxAct, and also visit taxact.com/taxinfo, to keep track of all the latest changes in tax legislation that could boost your refund.
Start a home business
If you run a small business out of your home, you can deduct part of your home expenses used exclusively for the business, such as Internet Service , telephone service and even the percentage of the mortgage or rent payment taken from your home office.
in 2013, the IRS began offering a simplified option for the home office deduction where taxpayers multiply a standard rate by the size of their workspace.
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