3 Tips to Maximize Tax Refunds
Photo by Markus Winkler under Unsplash License
3 Tips to Maximize Tax Refunds
The tax season has arrived yet again, but with the growing threat of the novel coronavirus pandemic, the Internal Revenue Service (IRS) has announced an extension on the deadline for the filing of taxes from April 15 to July 15th, this year.
The extension gives taxpayers more time to accomplish their forms and compute their dues to the government amid these trying times. This also gives taxpayers more opportunities to see whether they qualify for tax refunds that they can claim for the previous year.
When Can Tax Refunds Be Claimed?
Based on the normal processing time, tax refunds are processed within 21 days. If taxpayers file by paper and request a physical check, it will take six weeks or more. Electronic filing with paper check refund requests takes four weeks or more. If the deduction is filed electronically through direct deposit, the process takes only 10 days.
With the current situation, IRS Commissioner Chuck Rettig advises taxpayers that filing electronically through direct deposit is the fastest way to get refunds. He also advises taxpayers to file as early as possible even though the filing has been extended to allow for more time to process the transaction.
He assures that even as the IRS is scaling back on some operations, the agency will continue with its mission-critical operations such as accepting tax returns and sending refunds.
How to Maximize Tax Refunds
Here are some strategies you can apply to get maximum tax refunds such as Earned Income Tax Credit, Child and Dependent Care Credit, Child Tax Credit and tax credits for education expenses. All it takes is being smart about your finances and doing the math.
- Review your filing status.
You and your spouse can itemize the possible tax refunds that you can apply for. See whether it will be more advantageous to file jointly or separately. In case of medical or business expenses where income thresholds play a major factor in computation, it might make more sense to file separately to claim a bigger tax refund.
If you are a single taxpayer supporting your family, you can check the possibility of applying as the head of the household to qualify for bigger refunds.
- Standard or itemized deduction?
Whether you have a lot of deductible expenses such as mileage and lodging, office expenses, charitable donations, mortgage interest, or student loan interest, compute if you will benefit more from standard write-offs or itemized deductions before computing for a refund. Make sure that you have proper documentation to support deduction claims.
- Max out your Individual Retirement Account (IRA).
If you maximize your contribution to a traditional IRA and qualify for an IRA tax deduction, you can deduct your contribution from your previous year’s adjusted gross income. You can fund your IRA up to the filing of the deadline for your contributions to be partly or fully deductible. The maximum amount for IRA is $5,500 for taxpayers who are 50 years old and below while those who are over 50 years old can max out contributions with an additional $1,000.
Show Your Compassion with a Car Donation
As taxpayers scramble to complete and file their tax returns to the IRS for this tax cycle, it is inspiring to note that Americans are pooling together to support various charitable causes.
Based on data released in 2019 by Giving USA’s Annual Report for Philantrophy, $427.71 billion was donated by individuals, bequests, foundations, and corporations to U.S. charities in 2018. Of the number, individual giving accounted for 68 percent, or an estimated $292.09 billion. This means American households are donating more than major corporations or foundations in supporting worthwhile advocacies.
Americans can indeed rely on each other for compassion. This is precisely why we at Breast Cancer Car Donations are here. We provide an online platform for kind-hearted people to turn over their old and unwanted vehicles to support charities that provide life-saving assistance to uninsured and cash-strapped breast cancer patients. Their donations entitle them to receive hefty tax deductions once their donated vehicles are sold at auction.
That’s why if you have an old clunker that you’ve been meaning to let go of, there is no better option for you than to donate it to us.
One vehicle donation from you will already make a difference in the lives of breast cancer patients. Thanks to you, our charity partners will be able to continue providing their beneficiaries with easy access to medical facilities where they can undergo full treatment. These charities also provide breast cancer survivors with follow-up care, while other beneficiaries receive free breast cancer screening and prevention and education services.
Aside from the top tax deduction that your donation will entitle you to receive, you’ll also benefit from our free towing service, which is available in all parts of the country.
You can donate almost any type of vehicle, and it doesn’t have to be in good shape.
For more information on our vehicle donation program, check out our FAQs page. Get in touch with us at 866-540-5069 or message us here if you have any questions or concerns.
Your Kindness Can Help Save Lives
Human kindness carries no price tag. It is comforting to know that there are many Americans who care for the needy and go the extra mile to help them. We appeal to your kind hearts to do the same. Call us at 866-540-5069 or fill out our online donation form to donate a car to help save lives today!