Invest in Tax Planning
Tax planning is one of the best ways to take advantage of all these deductions and get the maximum tax refund possible. Tax planning often starts at the very beginning of the year and takes into account how much money you'll earn and how different expenses (or extra income) affect the total tax amount that you'll owe. Planning also helps you evaluate different ways of using your money to buy needed, yet tax-deductible items or make other tax-reducing investments.
A tax-planning professional (or you, if you're your own best accountant) can play with the numbers in computer software to evaluate what changes you can make to lower the tax bill, therefore upping the refund.
For more tax tips, check out the links below.
Last editorial update on Feb 28, 2020 04:26:41 pm.
- Edmunds. "Electric Vehicle Tax Credits: What You Need to Know." Jan. 29, 2019 (Feb. 24, 2020) https://www.edmunds.com/fuel-economy/the-ins-and-outs-of-electric-vehicle-tax-credits.html
- IRS. "The child tax credit benefits eligible parents. " Oct. 9, 2019. (Feb. 24, 2020) https://www.irs.gov/newsroom/the-child-tax-credit-benefits-eligible-parents
- IRS. "Interest on Home Equity Loans Often Still Deductible Under New Law." Feb. 21, 2018 (Feb. 24, 2020) https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law
- IRS. "IRS provides tax inflation adjustments for tax year 2019. " Nov. 15, 2018. (Feb. 24, 2020) https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2019
- IRS. "Publication 503 (2018), Child and Dependent Care Expenses" (Feb. 24, 2020) https://www.irs.gov/publications/p503
- IRS. "Qualified Business Income Deduction." (Feb. 24, 2020) https://www.irs.gov/newsroom/qualified-business-income-deduction
- IRS. "Retirement Topics: IRA Contribution Limits." (Feb. 24, 2020) https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
- IRS. "Topic No. 502 Medical and Dental Expenses. " Feb. 11, 2020. (Feb. 24, 2020) https://www.irs.gov/taxtopics/tc502
- Mercado, Darla. "Small-business owners look to grab this 20-percent tax break." CNBC. Feb. 4, 2019 (Feb. 24, 2020) https://www.cnbc.com/2019/02/04/got-a-small-business-see-if-you-can-grab-this-20-percent-tax-break.html
- Perez, William. "Home Improvement and Residential Energy Tax Credits. " The Balance. Jan. 15, 2020. (Feb. 24, 2020) https://www.thebalance.com/residential-energy-tax-credits-3193014
- Perlman, Jackie. "The Credit for Other Dependents (Formerly Family Tax Credit)." H&R Block. Nov. 8, 2018. (Feb. 24, 2020) https://www.hrblock.com/tax-center/irs/tax-reform/family-tax-credit-other-dependents/
- Tax Policy Center. "What are itemized deductions and who claims them?" Tax Policy Center Briefing Book: Key Elements of the U.S. Tax System (Feb. 24, 2020) https://www.taxpolicycenter.org/briefing-book/what-are-itemized-deductions-and-who-claims-them
- TurboTax. "Energy Tax Credit: Which Home Improvements Qualify?" (Feb. 24, 2020) https://turbotax.intuit.com/tax-tips/home-ownership/energy-tax-credit-which-home-improvements-qualify/L5rZH56ex
Many Americans don't think about their tax bills until the new year. But there are things you need to do before Dec. 31 if you want to pay less later.