The stimulus checks They represent economic relief for taxpayers in the United States, do you know how you can increase your refund in 2024?
The Internal Revenue Service (IRS) uses direct deposit to electronically issue tax refund payments directly into taxpayers’ bank accounts.
In this note, learn about the ways in which this money can increase with strategies that offer real ways to reduce your tax liability.
FIVE TIPS TO INCREASE YOUR REFUND IN 2024
Below, learn five important points from Lisa Greene-Lewis, CPA and tax expert. TurboTax:
1. More deductions
- The Internal Revenue Service allows you to itemize your deductions: the standard one is up to US$13,850 for singles and heads of family, while for married people filing jointly it is up to US$27,000. Calculating your taxes both ways will help you know which way you can get a bigger refund. However, if the taxpayer has itemized deductions that are close to the standard deduction, these can be donated to charities and thus deduct your charitable contributions and increase your itemized deductions over the standard ones.
2. Health Savings Account
- Pay medical expenses with pre-tax income to increase the potential of your medical expense deduction. This year you can contribute for individual coverage up to US$3,850 and family coverage up to US$7,700.
- Schedule treatments and medical exams in the last quarter of the year to increase the potential of your deduction of medical expenses.
3. Improve your retirement
- Making a contribution to your retirement savings account can go a long way toward reducing your tax-deductible income whether you’re contributing to a 401(k) plan or a traditional IRA.
4. Energy efficiency
- The Inflation Reduction Act includes several provisions and extensions and increases of tax benefits that relate directly to energy efficiency. Therefore, home improvements, purchasing electric vehicles that contribute to this Law can be of great help to reduce your tax-deductible income.
5. Pay taxes on time
- Taxpayers who stick to the schedule increase their chances of getting a larger refund. Look for payments or contributions you can make before the end of the year to reduce your taxable income. For example: If you can, make your January mortgage payment before December 31 and you will have those additional interests for your mortgage interest deduction.