How To Get The Most From Your Tax Refund

GET THE MOST FROM YOUR TAX REFUND • Most comprehensive of the three • For individuals that make less than $100,000, with little tax deductions. • Taxable income below $100,000 • Interest income must be $1,500 or less • Under the age of 65 • Tax filing status of Single or Married Filing Jointly • The filer cannot have any dependents 1040 Long Which 1040 form is right for you? Form 1040A • Taxable income below $100,000 • Filer çan have a çapital gain distribution, but no other capital losses ör gains • The only deductions allowed are those for IRA contributions, student loan interest, education expenses, or higher education tuition and fees • Only tax credits allowed are those for children, education, earned income, child and dependent care expenses, adoption expenses, elderly and retirement savings account contributions • Does not allow for itemized deductions GETTING A BETTER TAX RETURN Increase Withholding If you want to increase the dollar amount you receive in your tax refund, reduce the number of exemptions on your W4. A larger amount of money will be withheld from your check each payday, therefore increasing your tax refund. Deduct All Donations Professional Expenses Common deductible expenses: • Property • Mileage • Cash • Tithes If you are required to purchase equipment for work that you are not reimbursed for, you may be eligible for a tax deduction. Review Filing Status Filing status, such as single, head of household, married filing separately or jointly, and others, can greatly influence the amount of money you receive in your refund. Possible Deductions Include: • Dependent care, or the costs associated with taking care of your dependent children and parents. • Alimony • Certain types of healthcare Increase IRA Contributions %24 Facilitates saving for retirement, and lowers the total taxable income because it comes off the top. The more you contribute to the IRA, the less of your income is subject to taxes. expenses Invest in 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. Look for new laws that might offer tax deductions you didn't know about. Hire a tax accountant or use a computer software program to take advantage of new opportunities. Sources: http://www.money-ine.com/inancial planning/tar-shelterlirs-tarformsexplained http://taxes.aboutcom/od/taxgossaryle1o99.htm http://money.howstuffeorks.com/personal-fnancelpersonal-income- taes/10-tips-for biggest-tar-refund.htmipage-10 EVY Associates, NC. TAX CONSULTANTS NationalPositions Profitable Internet Marketing HOW TO TIPS orm 1040E Familial Obligations Use Current Tax Laws