Tax Season Tips: Smart Moves to Boost Your Refund Before Filing

As the tax deadline approaches, there are still ways to make the most of your return. With a few strategic moves, you can reduce your taxable income and potentially increase your refund. Consider these last-minute steps before filing your taxes.

1. Contribute to Retirement or Health Savings Accounts

If you haven’t yet contributed to your Individual Retirement Account (IRA) or Health Savings Account (HSA), you still have time. Contributions made before the filing deadline may be deducted for the previous tax year, which can lower your taxable income.

Traditional IRA contributions may be tax-deductible, reducing your tax burden.

HSA contributions provide tax-free savings for qualified medical expenses and can lower your overall tax bill.

2. Take Advantage of Overlooked Tax Deductions and Credits

Many taxpayers miss valuable deductions and credits that could help them save money. Be sure to check if you qualify for:

• Earned Income Tax Credit (EITC) – A credit for low- to moderate-income earners.
• Education Credits – The American Opportunity and Lifetime Learning Credits help offset tuition and education expenses.
• Medical Expense Deductions – If your medical costs exceed 7.5% of your adjusted gross income, you may be eligible for deductions.

3. Optimize Business Expense Deductions

If you are self-employed or own a small business, you may be able to deduct a range of expenses, such as:

• Home office costs
• Business-related travel and mileage
• Professional subscriptions and training

Properly tracking and claiming these expenses can reduce your taxable income and help you keep more of your earnings.

4. File Electronically and Opt for Direct Deposit

Filing your tax return electronically can help you avoid common errors and speeds up the refund process. Choosing direct deposit ensures you receive your refund faster compared to waiting for a mailed check.

5. Consider a Filing Extension If Needed

If you need additional time to gather documents or file an accurate return, you can apply for a tax filing extension. Keep in mind that while an extension gives you more time to file, any owed taxes must still be paid by the deadline to avoid penalties.

Start Planning Now

Taking these proactive steps can help maximize your tax refund and set you up for financial success. If you’re unsure about which deductions or credits apply to you, seeking professional tax guidance can help ensure you’re making the most of your return.