Refund
best way to maximize your refund
Answers
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I would love to share a few tips that could help to maximize your refund!
First, you want to make sure you are filing with the best filing status. If you are eligible to file for head of household or married filing jointly - those are more advantageous. You can check your filing status through the IRS link:
Second, you want to ensure that you are claiming all eligible dependents. You may qualify for a $500 credit for your dependent that can reduce your tax liability.
Third, you can deduct the loan interest on RV, campers, or boats. You're allowed to deduct mortgage interest on primary residence and one other residence. The definition of what constitutes a residence is very broad and includes RVs, campers, and boats, as long as they have cooking, toilet, and sleeping facilities.
Fourth, if you pay anyone to take care of your younger children while you work, those expenses are qualified under the dependent care expenses and can be used for the dependent care credit.
Fifth, you can contribute to an IRA for 2024 until the April tax deadline and deduct contributions to traditional IRAs on your 2024 tax return if your income isn't too high. You may also be able to claim the Retirement Savings Contributions Credit if your income is low enough.
Sixth, whoever is claiming the college student also gets to claim the education credits for the student. It's almost always better for the parents to claim the student as a dependent and claim the college tuition on their return. This is because the parents' tax bracket is usually higher, so they usually benefit more from the education credits than the student does. You can only claim if your student is a dependent.
Additionally, we offer a refund maximizer. The FreeTaxUSA Refund Maximizer is a free service that uses the information from your tax return and asks you additional questions to try and find any deduction, credit, or refund opportunity that might apply to you.
