Getting maximized tax refunds in Hayward, CA is the number one client goal during tax season. For most people, the less money they have to pay to the IRS, the better—and they might even be counting on a hefty refund to make ends meet. That’s more important now than ever, during the COVID-19 pandemic.
Here are a few different ways you can maximize your refund. As always, working with a skilled CPA is the best way to ensure you’re getting the highest refund available:
- Change your filing status: Depending on how you file, you may be able to claim greater deductions. For example, filing as “married, filing separately” is a good idea for those with a lot of medical expenses. The child tax credit ($2,000 for each child, for people making under $200,000 per year) is also available to spouses filing separately. However, this can cause you to miss out on other deductions, so you’ll need to talk to your accountant about the best way to proceed.
- Claim as many deductions as possible: Make sure you claim all the deductions for which you qualify. Some of the most commonly used deductions include student loan interest, childcare, jury duty fees, medical miles, state sales tax, out-of-pocket charitable donations, state income tax on the last year’s return and the Earned Income Tax Credit. Your accountant can help you determine which deductions you can claim, and explain how it will affect your overall tax liability. Remember to keep good records of your donations, mileage and other documentation you’ll need for tax time.
- Max out your IRA or HSA contributions: You have up until April 15, 2021 to make tax-deductible IRA or HSA contributions, which can be claimed on your 2020 tax returns. If you’re self-employed, that deadline is extended to October 15. Make sure that you contribute to a qualifying plan, or you may not be eligible for the same amount of benefits.
- Timing is key: Although many of these deadlines have already passed, it’s smart to keep them in mind for next year. For example, if you pay your January mortgage payment before December 31, you can claim that as a deduction. Charitable contributions, medical expenses and improving your home office can also be added to the list. Just confirm with your accountant before tackling any major expenditures.
- Learn more about tax credits: Finally, make sure that you understand which tax credits you can use. Many people fail to claim the Earned Income Tax Credit, education credits and credits for energy-saving home improvements. This could knock thousands of dollars off your tax bill, and maximize the amount of money you’ll get back from the federal government.
As you can see, there are plenty of ways you can get a maximized tax refund in Hayward, San Leandro and Castro Valley, CA Working with a CPA can increase your refund even further. Call Menjivar & Company CPAs, Inc. today to learn more or schedule an appointment to discuss your tax situation. We look forward to assisting you!
Categorised in: Tax Return