Best way to maximize your tax refund

Danielb
Danielb Member Posts: 2 Newcomer
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  • TristinJ
    TristinJ FreeTaxUSA Agent Posts: 6

    Great question. It really depends on your situation, but here are 3 things you can look at to help get the most back from your tax return. First is your filing status, each with different tax implications. To find the filing status appropriate for your situation, we recommend using the IRS's interactive tool found at this site: https://www.irs.gov/help/ita/what-is-my-filing-status.

    Next, there are many different types of tax credits available. Credits are great at boosting your refund because they offer a dollar-for-dollar tax reduction. Some credits to consider (depending on your situation) are: Child and Dependent Care credit, Education credits, Home Energy credits and Retirement Savers credit.

    Then there are deductions, which work a bit differently than credits, but still help with the bottom line. Examples of these are the IRA contribution deduction and the Student Loan Interest deduction.

    Here is an IRS site that goes into more details regarding the individual credits and deductions: https://www.irs.gov/credits-and-deductions

    Hopefully that helps with getting the most out of your tax return this year.

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