It is about time to round up all your financial reports, and widdle your way through your filing your taxes. For some, this time of the year is quite simple, but for the middle-class household, tax time can be somewhat difficult and in-depth.
Not everyone has the time to keep up with the changes in the tax laws, but there are a few easy ways to make sure you get the biggest bang for your buck this year. Here are five simple ways to MAKE money on your taxes this year.
Invest in a knowledgeable accountant
The easiest way to save money on your taxes is to hire a knowledgeable accountant. Most people do not have the time to really get to know the ins and outs of filing taxes, and accountants are required to take continuing education courses each year.
The stipulation of required continuous education can give you peace of mind knowing that your accountant is fully prepared to inspect every nook and cranny of your finances in order to save you the most money possible.
Tweak your W-4 to benefit your return
Instead of saving money at the end of the year, try saving money all throughout the year by tweaking your W-4 form a bit. You can change your form to instruct the government to withhold extra each pay cycle.
By the end of the year, you will most likely have a hefty surplus to be returned to your bank account. If not, you will almost certainly avoid having to pay anything in after filing.
If you are a student, you can change your W-4 form to file exempt on your taxes. Students are exempt from paying taxes, and you will receive your entire paycheck in full.
Divert some of your cash to your 401(k)
You can save money, tax-free, by diverting more cash to your 401(k). The funds you accrue in your 401(k) savings account are tax-free. You will not be able to immediately access the funds, but there are plenty of ways to break into your savings if it is absolutely necessary.
Never ignore the possibility of the EIC
Depending on the amount of money you made this year, you may be eligible for the Earned Income Credit. The Earned Income Credit will give you a sizeable boost in your return, and was put into play to help out blue collar workers.
Do not forget to claim your mortgage interest
If you are paying a mortgage payment on your home, you can claim the interest you paid at the end of the year. This benefit is an upside to paying out a longer mortgage agreement.