If you’d really like to maximise your tax return, but don’t even know where to start, keep reading. We share some top tips to ensure you get the best from your tax refunds.
How can I maximise my tax refund?
Would you believe us if we told you income taxes will be a bigger lifetime expense than a house or a college education? It’s true. If you don’t have taxes under control, the chances of you stabilising the rest of your income are very minimal. While most people take steps to reduce their tax expenditure through their tax returns, most people’s tax returns are far from optimised.
Do you mean cheating on your tax return?
No, of course not. While some people may get away with cheating on tax returns for a long period, eventually they come short. There are plenty of legitimate ways for you to ensure that you do not hand over unnecessary money to the government without you going as far as to try to cheat the system. It’s a case of knowledge- the revenue service is never going to tell you failed to claim a deduction, but there’s many perfectly legitimate deductions you can make to contribute to your tax refund.
What tips do you have for tax returns?
Start by looking at your car and optimising your tax return with regards to your mileage. For starters, you are entitled to claim business expenditure for any trips you make on your employer’s behalf which you are not reimbursed for. You can also deduct any travel expenses relating to charitable work you do. If you need to undertake further education and training for work purposes, those costs can also be claimed. It will have to be education required by your employer [or the law] and improve skills in your work environment. Any legitimate education courses, however, can be claimed on your tax return. See how ?
What else can I claim a tax refund on?
Do you maintain a home office used in your employment? You will also be able to deduct certain expenses for this cost. There are generally some guidelines to follow, however, which may very slightly depending on your area. However, mostly it is required that it is your primary office, you used it to meet customers, and the area is exclusive to that purpose. Remember, too, that you will get tax refunds back on retirement savings- so fund them to the full- and you can claim capital losses against capital gains too. You may also want to check with a finance professional about the following categories as the law can get difficult to follow, but gifting assets to your children is possible to help reduce your estate liabilities, and certain child care expenses can also be claimed on your tax return to help increase your tax refund.
Remember that many of these deductions should be filtered through a tax professional who is aggressive in getting you money back on your tax return. You may even be able to claim for tax refunds on previous years via previous year’s tax returns if you get a concerned professional willing to help.