The April 17 tax deadline is less than a month away. If you haven’t filed yet, there’s still time to get prepared and maximize your tax refund. For those who have already submitted their taxes this year, it’s never too early to start preparing for next year’s return. The steps you start taking now can potentially increase the amount you get back.
Here are five tips that will help you get the most out of your tax refund:
1. Get Organized
Whether planning for the upcoming filing or for next year’s taxes, it’s important to get yourself organized as soon as possible. Make sure you have a copy of last year’s tax return along with Social Security, Tax ID numbers and birth dates of everyone in your household.
2. Collect Income Information
Gather W-2s, along with any 1099 forms from other sources of income, such as freelance work, jury duty, prize winnings, scholarships and rental properties – just to name a few. If you’re a business owner, collect all receipts and sales records from products or services sold.
3. Track All Your Deductions
It’s a good idea to keep a travel log for all tax-deductible activities (job interviews, business trips, lunch meetings, volunteer work, doctor’s appointments, etc.). Also, keep all your receipts for tax-deductible expenses, charitable deductions and moving expenses if the move is for a job.
4. Take Advantage of IRA Contributions
You actually have until April 15 to open a traditional IRA and have it count for the 2017 tax year. This allows you to claim the deduction on your return. The more contributions you make, the less taxable income you’ll have, which can boost your return.
5. Hire a Professional
When you want to get the most out of your tax refund, consider hiring a professional accountant or licensed tax preparer like Ferguson, Timar & Company. We’ll help you navigate the process, file all your tax documents properly and get you the most out of your tax return.
These are just a few ways that you can maximize your tax deduction. Want to learn more? Download a free copy of our 2017 Tax Prep Checklist to ensure that you have all the documents you need. Ferguson, Timar & Company specializes in tax preparation for individuals and small business owners throughout Fullerton, Brea and Yorba Linda. Contact us today to schedule a consultation.