Three Tips for Your Taxes
Take it from a tax attorney – there are likely steps you could take to increase the amount of your tax refund. If you are still working to complete your taxes, take note — below are a few tips worth considering.
Tax Tips From A Tax Attorney
1. Boost your IRA
You can open up an IRA for the previous year all the way up through April 15. If you choose to open this backward-looking IRA, say, the day before you file your taxes, you may reduce your taxable income dramatically. If you have the means to do so, think about doing the maximum IRA contribution. The difference in tax brackets could be well worth the effort.
2. Research those credits
Look into the Earned Income Tax Credit. Many people overlook that one. If you have kids in college, investigate the American Opportunity Tax Credit – it could save you $1,000. If you yourself are taking graduate-school courses, then make the most of the Lifetime Learning Credit. Bear in mind that credits get you more money back than deductions, when it comes to your tax returns.
3. Think about filing separately
Are you married? 19 out of 20 married couples file jointly. But filing jointly is not always the smartest move. The status of “married, filing separately” lets each of you have your own adjusted gross income, or AGI. Those individual AGI’s may allow for each of you to write more off. If you have multiple children, having each of you claim one kid (or more) as a dependent could goose those numbers too. It is a move worth thinking about. It requires a bit more time and energy, but the tax savings can be significant.
Reach Out To A Tax Lawyer For Assistance
Don’t forget that you can always ask for help. A tax attorney from our Cincinnati based law firm can provide advice that could yield thousands of dollars’ worth of savings. Want to chat about it? Call us at 513-891-7087 or simply fill out our contact form below.