Tax season is well under way and if you haven’t filed yours yet — what are you waiting for? Each year most people look forward to a lump sum of money because of their tax refund, but not everyone’s will be large or even a positive number. How can you make sure that your refund is of a substantial size?
Increase the Amount Withheld
One of the easiest and most effective ways of gaining a large refund is to increase your withholding. When you fill out your W-4 tax form from your employer, keep the number of exemptions to a minimum. As the number of exemptions increases, the size of your withholdings decreases. Increasing your withholding will mean less money per paycheck, but a larger refund in the spring.
Contribute to Your IRA
This method has two benefits: (1) Contributing to your traditional IRA lowers the amount of taxable income. (2) Your retirement savings will increase. Saving money for your retirement is a wise financial decision that all should partake in, and in doing so you will have less of your earnings taxed. The less taxes you owe translates to a greater refund.
Working with a professional tax preparer or accountant will help you receive the maximum amount of tax deductions possible. Planning throughout the year will help your tax preparer have all of the necessary information to apply for these deductions and tax-reducing investments. This is especially helpful for those with businesses.
Increasing your tax refund can be done in a multitude of ways, especially if you have the right help. Align yourself with the best help you can get by contacting the experts at Berkow, Schechter & Company LLP. To learn more, or to schedule an appointment, give us a call at (203) 356-1061.