How to Increase Your Federal Tax Return
Every year, taxpayers will need to prepare their tax returns in order to be considered for a tax refund. The process requires proper planning where you need to maintain proper records for each transaction and adjust it to ensure that you find possible avenues for saving some money. The amount can be a large one so it is important that all information is accurate and complete.
Instructions
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Your first step will be to itemize all your deductions and align them with your state income tax laws. This is essential as some states will tax a small proportion or none for that matter, where adjustments will be subtracted, which otherwise may have been included under federal tax laws.
Some of the common additions may include bonus depreciation, student loan interest etc, while subtractions may come in the form of savings plan, retirement benefits, state income refunds etc. -
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After computing your taxable income, you will be required to figure out state tax liability. Depending on your state, you will either be charged a flat rate or tax-bracket rate related to your income level. Now deduct these liabilities with any tax credits you may be qualified for.
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Having prepared the returns, you will now be filing them electronically or through mail. In order to accurately measure the returns, you can use software or get professional help. The electronic method seems to be the most efficient one, given that any refund may be directly deposited in your account. However, if you are a traditional person, then you can choose the mailing option as well.
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When filing your taxes, it is best to itemize each item in order to increase the refund. This can take the form of itemizing in order of preference where you list medical bills, taxes etc. As for deductions, you will be listing items donated to charity, theft loss, job expenses etc. All will be entered in Section A of the form where specific headings will be assigned to each section such as Medical and Dental Expenses, Casualty and Theft Losses and Job Expenses and Miscellaneous Deductions.
