Maximize Your Tax Return With These Tips!

When it is time to file your tax return, it is crucial for you to do everything within the legal boundaries of the Kentucky state laws in order to maximize your tax return. A tax advisor in Louisville, KY, can turn out to be quite useful if you want to squeeze every possible dollar out of your taxes. Some important tips on how you can maximize your tax return are:

  • Move some of your payments to an early date.

You need to take all possible chances of deduction. Consider increasing your deduction by moving some of your payments to an early date. For instance, if your state income tax bill is due on January 13, you can transfer it before the last day of December and deduct it from the return of this year, and the same can be applied to other tax bills as well. Keep in mind that if you are subjected to AMT (alternative minimum tax), having up may cost you money.

  • Make charitable contributions.

Another way is to make a charitable contribution on or before the last day of December. You can deduct the amount of money you have donated from your income. But make sure you keep a record of it. Ask the organization that you donated to give you a receipt for the same so that you can keep it in your records. If the amount or item donated is more than $500,000, you will need an appraisal.

  • Postpone the receipt of some of your income.

In order to keep your tax burden low this year, you can simply put off some of your income. Consider this strategy only if you are going to end up in a lower or same income bracket next year. Otherwise, it is not worth it for you.

  • Use your flexible spending account.

There are plenty of employers that let their employees pay in FSAs, allowing them to use them for necessities such as medical bills or child care. However, it does have a notable disadvantage: you have to make a decision at the start of the year about how much of your income you want to be allocated to your FSA every month, and if you fail to utilize all of it by the year’s end, you are going to lose it all.

A professional can be of great help!

The tips mentioned above are just a handful of all those that you can benefit from. A professional who possesses all the knowledge that you may need in this specific field can guide you on all other such measures that you should probably take advantage of, as they are legally allowed. Thus, you should certainly consider hiring a tax advisor.