Money Management

7 Tips to Maximize Your Tax Return

Let’s be honest, we’re all looking for ways we can reduce what we owe. But, minimizing what you owe and maximizing on your tax return isn’t just about finding credits or reducing your income. In fact, there are several ways that you can maximize your tax return without investing extra time, energy, or money. Let’s see how!

ONE Confirm Your Filing Status

1There are five primary filing statuses, and they’re all pretty self-explanatory: single, head of household, married filing jointly, married filing separately, and a qualifying widower. However, since a few of them could apply to your situation, you’ll want to choose the one that benefits you the most.

TWO Itemize your Return

2One of the most notable differences in the 2018 tax laws was that the standard deduction almost doubled, replacing a number of other deductions that once existed. Today, the standard deduction for single filers is $12,200. Married filing jointly is $24,400, and according to the IRS, is the way that about 90 percent of the populace will file.

THREE Find Deductions and Credits

3The opportunities for tax deductions and tax credits are plentiful and often based on something you’re already doing. The key is to make sure you’re capitalizing on those actions. Deductions and Credits may include, but are not limited to: mortgage interest; medical expenses; home office or office supplies; state income taxes paid; student loan interest; state sales tax paid; and charitable gifts and donations.

Member Benefit Alert!

Did you know that as a Spero member, you can get $15 off your next purchase of TurboTax? Make doing your taxes this year easy, with guaranteed calculation accuracy.

For more information, visit www.spero.financial.

Visit http://turbotax.intuit.com/ lp/yoy/guarantees.jsp for TurboTax product guarantees and other important information. Limited time offer for TurboTax 2020. Discount applies to TurboTax federal products only. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries.

FOUR Add to Your Retirement

4Did you know the government will give you credit for putting your money away for the future? It’s true! When you contribute to an individual retirement account (IRA), you can get a deduction of up to $6,000 per year. (Individuals over the age of 50 can claim up to $7,000.) But that’s not all. Uncle Sam also allows a “saver’s credit,” which offers $1,000 back (or $2,000 for married couples) if you contribute to your IRA.

FIVE 5Give more

Charitable donations aren’t just calculated by how big of a check you wrote to your local non-profit; even the cake you made for Johnny’s bake sale can qualify (as long as you keep the receipts). Make sure you keep clean records so you can prove when and where and for whose benefit you donated your time and resources.

SIX 6File on Time

Although the deadline for your 2019 tax return seemed to be a moving target due to the impact of COVID-19, the 2020 tax season should return to normal. This means that your tax return must be postmarked or electronically filed by April 15, 2021, to be considered “on time.”

SEVEN Check the Numbers

7It may seem like a no-brainer, but mistakes on your tax return can cost you. Make sure that you include all income — even that which you may not have received paperwork for (i.e., a 1099 for independent work as a contractor or income from interest).

Tax returns don’t have to be very complicated, but as with most things involving the government and money, it’s not something you want to make a mistake on. For your best interest, consult with an accountant or tax preparation service that can double-check your return for missing credits and missing income. This will not only help you maximize your return but also keep you from accidentally getting into hot water.