Tax season is always a stressful time, no matter if you work for yourself or you are employed by a large corporation. The chunk of your income that goes towards paying your tax is quiet substantial, so it can be nice to get some of it back in the form of a tax refund. When the time comes around to getting your refund, it can be a pleasant surprise in your bank account, allowing you to pay some bills, make a purchase or treat yourself to something nice.
It can sometimes be difficult trying to plan ahead and determine exactly how much your refund will be, but there are now free tools available to use to help determine what your refund will most likely be. Some people may never expect to receive a substantial refund, but there are ways in which you can maximise the amount that you receive. Once you are prepared and know all of the tricks in the book, you can make the process a whole lot easier for yourself. While taxes are an inevitable part of life that you have little control over, you can control your tax refund size to a certain extent. Here is some advice that will help you to do just that.
Documenting all professional expenses
While some people may think that documenting professional expenses is solely dedicated to those people who are self-employed, those who are employed by corporations can still decrease their tax bill and get a greater tax refund as a result of documenting their professional expenses. Some professionals will require the employees to obtain and use equipment that they must buy out of their own income. If you are not reimbursed by the company for these expenses, you can possibly deduct them from your personal income tax and therefore receive a larger tax refund. For example, some professional publications require annual subscriptions that will help workers to perform their jobs better, which means that these expenses can be deducted.
Don’t forget to regularly review your individual filing status
Over time, your filing status will most likely change, however many people forget to manually change it and reap the benefits that come with this change. Filing status includes being single, the head of a household, and jointly recording income as a couple of doing it separately and so on. By filing with the wrong status, you can be leaving a lot of money on the table when it comes to tax season. Some circumstance in which your filing status may change is if a spouse suddenly dies or you have a divorce. These may entitle you to a larger tax refund, something that you should not overlook. When married couples decide to declare their income in a joint manner, most of the time they will be entitled to a bigger tax refund as this will usually decrease the overall tax bill and make the most of any tax breaks that are available for married couples.