TAX season can be a stressful time, so it is important to be prepared and fully aware of the best ways to get the most money back.
The U.S. Sun spoke to several tax and accounting experts who shared their top tips on how to save money and get a fast return.
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Americans may be leaving up to $5,000 on the table by not planning and overlooking credits and deductions available to them, according to some experts.
Taxes for 2024 returns are due on April 15 for most people; however there are exceptions for some filers.
These include about 10 million people impacted by the Los Angeles fires, with those affected having until October 15 to file.
Tax expert Chris Rivera said people can follow some simple tips to help save money.
Firstly, Rivera said it was important to not miss any deductions. For example, if you are self-employed or own a business, ensure you can claim deductions like home office expenses, business mileage and internet costs.
Also, use detailed records to back up these claims.
Secondly, take advantage of tax credits. Rivera said tax credits like the earned income tax credit or child tax credit provide dollar-for-dollar reductions in taxes owed.
Lastly, ensure you choose the right filing status, which can significantly impact your tax liability.
Senior business advisor and tax specialist Abigail Wright added that tax season can be a real pain, but that it doesn’t have to be.
Wright said there were a number of simple ways to save, including ensuring all records are together.
“If your receipts, invoices, and records are here, there, and everywhere, it is really easy to lose something important,” Wright said.
EXPERTS CAN HELP
“Keep everything in one spot, it saves you time and may even save you some money.”
Putting money in a retirement account could also help you save money by paying fewer taxes this year.
Also, Wright said sometimes it was a good idea to get expert help.
“I have helped many business owners make smart tax decisions for years, and let me tell you-these guys make a big difference. They know the rules and can find ways to save you money you might miss,” she said.
“Taxes do not have to be overwhelming; a little planning and the right advice might enable you to manage them like a professional, or even come out ahead.”
TAX CREDITS ‘BETTER THAN DEDUCTIONS’
Tax expert Karla Dennis added that tax credits were “always better than deductions” as they lower income for deciding your tax return.
TurboTax expert Lisa Greene-Lewis said people should file “as soon as possible” to get a faster return, noting the average refund was actually close to $3,000.
“First gather all your documents in one place so you don’t leave receipts and forms for expenses that can be worth deductions and credits like expenses for day care, college expenses, or expenses directly related to your business if you are self-employed,” she said.
“If you are self-employed don’t forget expenses related to business travel, business miles, supplies, electronics, and your home office can save you money.
“Did you know if you purchased an SUV weighing 6,000 pounds and under 14,000 pounds for your business and use it more than 50% for your business you may be able to deduct up to $30,500.
“One of the only moves you can make this year and make a positive impact on your 2024 taxes is contribute to your IRA.”
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