The 2017 tax season has come and gone. Did you get your refund yet? Are you wondering why you didn’t get the refund that you wanted? Don’t you wish you could have more money in your pocket the next tax season? That is certainly possible, as long as you know where to look for the right tax deductions.
But first, how are you filing your tax returns? Are you hiring a CPA for this purpose or do you have a tax preparation software such ATX or Drake? Well, here’s what you should do – you should sign up for any cloud hosted tax preparation services, where you can host your tax application and access it from anywhere and anytime.
We at CW also provide Tax Software Hosting such as TAX, proSeries, Lacerte, Drake etc. and accounting software such as QB hosting. You can sign up for any of our services on a pay as you go basis for a small monthly fee. This would cost you much less than any other hosting services in market.
Here are some of the best ideas to get a bigger tax refund in the next tax season 2018...
1: Buy a home. Buying a home is a really great idea from the tax perspective. You will get the financial security you need as you no longer have to pay any rent and cannot be asked by anyone to leave the house; you will also be able to save on your tax bill since the mortgage interest and property tax deductions could do wonders for your refund. All mortgage interest payments, you should know, are tax deductible.
2: Go solar, as the sun is the most efficient energy source out there. The government offers many incentives to those who want to go solar, such as tax credit of as much as 30% on what you spend on solar energy systems. You will also get tax credits for spending on other energy efficient systems such as geothermal heat pumps and small wind turbines.
3: Start contributing to retirement plans such as a Roth IRA and IRA. Investing in an IRA will help you get bigger tax refunds. Your investments will grow over time and will be much more valuable when you retire. All of your contributions to the IRA are tax deductible. The best way to invest in the IRA is to start contributing as early as possible a little each month. You may want to contribute to your 401(k) as well, should you choose to as your contributions will be matched by your employer.
4: Deduct all relevant business expenses. If you work for yourself, you can deduct so many expenses relevant to your business such as car mileage, computer and internet use, business lunches and dinners, daily appointments, etc. You could even hire your children for age appropriate jobs. This is another great way to get deductions for up to $6,300.
5: Getting married is another easy way to get refunds as long as you time your marriage well. The government allows you to file your tax returns as a married couple, it would make sense to marry the coming January than in December so that you get to benefit from the tax deductions for the tax season ahead.