Working with a professional is the easiest way to get the largest tax return possible with little to no work on your end. If you decide to file your own taxes, we put together a list of things you can do to help you get the highest tax refund possible.
Consider significant life events or changes during the past year
Significant life events include marriage, divorce, moving, buying property, changing jobs, being affected by a natural disaster, a death in the family, and new household family members. Major life changes could impact your filing status and therefore, your tax return.
Contribute to your retirement
Until Tax Day, you can make a 2019 contribution to your Individual Retirement Account (IRA) and reap the benefits of a tax deduction of up to $6,000 ($7,000 if you are 50 or older). You may also qualify for the saver's credit, which is up to $1,000 ($2,000 for married filing jointly) if you contribute to your retirement.
Do not take the standard deduction if you can itemize
Standard deductions nearly doubled under the new tax law, and some deductions no longer exist or have been reduced. Though the standard deduction is quite a bit higher, you might get a larger refund if you itemize your deductions and keep track of qualifying expenses. If you are near the threshold, make sure to research all additional expenses that may get you over the standard deduction threshold.
Know your filing status
You'll file as single, married filing jointly, married filing separately, head of household, or qualifying widow(er) with dependent child. The status you choose sets your income tax rate. If you do not know your filing status, here is a free IRS tool.
Keep up with the latest tax law changes
As mentioned above, deduction have changed quite a bit under the new tax law. It's important to keep track of tax law changes that will significantly change how you file. You can check the IRS website or contact a professional like Denver Tax Pro for tax news that could impact your refund.
Know what you can claim as a credit
Common credits include earned income credit, child and dependent care credit, child credit, adoption credit, homebuyer credit, energy credit, saver's credit, and credit for the elderly/disabled. Deductions are important, too. Whether you e-file or hire a professional, these deductions and credits should be found for you.
When you work with a professional like Denver Pro Tax, all the work is done for you. We can help you get your maximum refund by getting you all the credits and deductions you and your business qualify for.
If you are in the south Denver area, let us help you with your individual or business taxes. Contact us today!