4 Ways To Increase Your Tax Refund | We Buy Houses
Ah, it is that time of the year when we all cram and scramble to gather all the bits and pieces of information to fill out your Form 1040 before April 15th – tax day for most Americans. It is the time of the year when we all have to account for our total earnings up to the last cent so the government can calculate our tax refund correctly.
To those who are expecting a bigger refund, it would feel like receiving and extended Christmas bonus minus the cold winter season. It’s the time to shop ‘til your drop, or something close to that.
But however invigorating this may be, not everyone gets to enjoy a huge return. Some we buy houses companies deal with house problems related to or caused by low tax refunds. While none of us can turn away from our tax obligation, we do have ways to control the refund amounts we get in the future. How can you do it? Here are some ideas…
How To Have A Greater Tax Refund Next Year
1. Increase Your Tax Withholding
For full time employees, this is a viable option. All you have to do is update your W-4 form. All information on your W-4 is used to determine how much money will be withheld from each paycheck to cover your personal income. The number of exemptions you claim is used in calculating your contribution.
The fewer exemptions you claim, the more money is withheld. Now, all you have to do is visit the human resources department and update your W-4. But do this sooner than later. The longer you wait to decrease your current exemptions, the fewer paychecks will reflect your increased withholdings. This will lead to a smaller refund than if you had changed your exemptions earlier in the year.
2. Change Your Filing Status
If you were single when you started your job and have gotten married, and/or are now responsible for a ‘mini me’ of your spouse, updating your filing status from single to married or single to married with children will greatly influence your future returns.
In general, couples who file joint returns can expect a significant adjustment. Filing a joint return seems to lower the overall tax dues and can offer some tax breaks unavailable to couples who file separately.
After a divorce case comes to an end, sometimes the spouse is entitled to alimony. In most cases, it is the wife that gets financial support from the husband to help fund their children’s basic and educational needs. Child support doesn’t normally qualify as a tax break, but alimony usually does.
4. Health Care
Some health care expenses can be tax deductible too. You may want to talk with your accountant to find out what type of health care expenses (and what percentage) may lower your tax burden without affecting your refund.
When It’s Too Late
Since tax day is almost here, you won’t have enough time to affect a change in this year’s taxes. So, chances are you might receive a small refund or none at all – or worse – you may owe.
When this happens, and you don’t have the money to stroke a check and submit it with your tax return, the IRS will still expect to get the money you owe them. The most action they can legally do is place a lien on your property or estate to satisfy the debt. In the real estate market, property owners go for a sell my house fast San Antonio posting in an attempt to pay off such debt.
If you find yourself in such a situation this April 15th, RealSprout can provide a practical solution to your problem. We buy houses in San Antonio from homeowners struggling with an unpaid debt or house maintenance that isn’t worth investing in. Talk to a one of our trained real estate agents to find out more. We’ll be glad to provide free, helpful information!