Copy
9 Tips To Boost Your Tax Refund
View this email in your browser
<<First Name>>,

During tax time, most of us are looking for ways to pay no more than what we owe in taxes.  Here are nine ways that might help you boost your tax refund. If you have any questions or concerns do not hesitate to call or head to www.bementcompany.com.
 
Deductions
Give em’ the shirt off your back? Be sure to get out your pencil and keep track!  Deductions can really add up, and knowing what you can or cannot deduct is half the battle.
 
Recordkeeping can be daunting, but oftentimes that work pays off. Remember to keep track of your charitable donations (cash and noncash), volunteer expenses, job-hunting expenses, unreimbursed business or medical expenses, miles driven for business, medical or volunteer work, and all of your medical expenses.  All of these can add up to some worthwhile deductions and possibly a lower tax bill or bigger refund.
 
IRA contributions
When it comes time to do your tax return, you might wish you could have done something more to increase your refund.  With IRA contributions you actually can do something after the year is over.
 
You have until April 15 to deposit money into a traditional IRA for the previous tax year, you can deposit up to $5,500 or $6,500 depending on age.  Traditional IRA contributions can reduce your taxable income and increase your refund.  If you saved for retirement in another way you may qualify for the retirement savings contribution credit, ask us for details or mention it as we do your return.
 
Increase your withholding
If you want a bigger refund one option is to increase the taxes your employer withholds from you paycheck.  Not a great idea?  It’s not always what we recommend but if you love getting a refund it might be an option for you.  Getting a lower refund may not always be a bad thing and may mean that you received your money during the year rather than waiting until you file your tax return.  Your withholding can be adjusted with an IRS W-4 Form.
 
Increase family size
Have a kid, move your mother-in-law in with you, or… just be sure to account for all of your dependents. For every qualified dependent you claim, you reduce your 2013 taxable income by $3,900. This can add up to substantial savings on your tax bill.   But, remember, there are rules for claiming a dependent. There is also a $1,000 child tax credit you might qualify for with each of your kids.  If you have questions about who you could claim, please do not hesitate to call.
 
Back to school
Thought about hitting the books? It might pay for itself in tax savings.   Tax credits, deductions and savings plans can help taxpayers with their expenses for higher education.  With the American Opportunity Tax Credit you might increase your refund by $2,500 with qualifying tuition expenses.
 
Make less…?
Just ask your employer to lower your salary.  Okay, maybe not. But being in a lower tax bracket can help you owe much less tax.  Simply put, the more money you make the higher the tax bracket you’re taxed at.  Some people are taxed at 10%, some at 15%, at 25%, all the way up to 39.6%.  It all depends on how much you make, but can fluctuate from year to year with the different credits, deductions, capital losses, or losses you might be carrying over from prior years.  This can get complicated so we recommend talking to us during the year to do some tax planning.
 
Credits
We’ve mentioned some credits above but there are many more, too many to list.  A tax credit reduces the amount of tax you are responsible for. There are two categories of tax credits, refundable and nonrefundable. Nonrefundable tax credits include childcare, first-time homebuyer credit, residential energy credits, refundable tax, adoption credit, etc. Refundable tax credits, which can help reduce your tax liability below zero, include health coverage tax credit, earned income credit, additional child tax credit, etc.
 
Buy a house
While the down payment or monthly payments might drain your bank account, the effect on your refund might help out.  Mortgage interest is deductible, and so are the property taxes.   You might also be able to take a home office deduction.  And most of the time you can also exclude any gain from selling your house.  Owning a home is usually a smart investment but relating to your tax return you might want to see what we recommend in your situation.
 
Look at your filing status
Should we file single, head of household, jointly, separate? One of the first decisions we make when completing your tax return is your filing status.  This decision usually has a major impact on a tax return and sometimes the decision is very clear but that is not always the case. Bement & Company can help you weigh the different options to maximize your refund potential.
 
Bement & Company can assist you in preparing your taxes and help you plan for future years.  We want our clients, and future clients, to not pay more than what they need to in taxes.  We look forward to working with you and please don’t hesitate to call, email, or go to our website at www.bementcompany.com.
 
IRS CIRCULAR 230 DISCLOSURE
To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

 
Bement Certified Public Accountants
39 East Eagle Ridge Dr. Ste 200
North Salt Lake, UT 84054

Add us to your address book

Phone: 801-936-1900
Fax: 801-936-1901
Website: www.bementcompany.com
Share
Tweet
Forward to Friend
+1
Share
Copyright © 2014 Bement Certified Public Accountants, All rights reserved.


unsubscribe from this list    update subscription preferences 

Email Marketing Powered by Mailchimp