How To Get The Most Out Of Your Tax Return

What To Keep In Mind When Using A Tax Refund Calculator

When using a tax refund calculator, its important to keep a few things in mind. First, make sure that the calculator is up to date for the current year. Second, enter all of your information accurately, including your filing status, number of dependents, and income. Third, remember that the tax refund calculator is only an estimate, and your actual refund may be different. Finally, if you have any questions, be sure to ask a tax professional. By following these tips, you can be sure that youre getting the most out of your tax refund calculator.

Put Your Money In A Super Fund

Super contributions might be one of the best ways to make the most of your tax return. This is especially true for workers who earn less than $52,000 a year. For each 1$ put into your super, the government will contribute 50 cents.

In addition, if youre married and one partner makes less than $40,000, the higher earning partner can contribute up to $3000 to the lower earning partnerys super fund. This results in a tax offset of 18 percent. This is a kind of saving that really pays off in the long run!

About Filing Your Tax Return

If you have income below the standard deduction threshold for 2022, which is $12,950 for single filers and $25,900 for married couples filing jointly, you may not be required to file a return. However, you may want to file anyway because you may be able to take advantage of several features and benefits in the tax system which could reduce the amount you owe, or in many cases, especially for people with low incomes, increase the amount you could receive in a refund. Some key factors to make sure you look out for include:

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Claim The Earned Income Tax Credit

Working families, individuals, people who are self-employed and others who have moderate to low income may qualify for the Earned Income Tax Credit. The EITC decreases the amount of taxes owed and may qualify you for a tax refund. To qualify, you must:

• Have a valid Social Security number
• Be a U.S. citizen, a year-long resident alien or a non-resident alien married to an American citizen or resident alien filing jointly
• Have income from self-employment, from an employer or from working on a farm
• Not be claimed as a dependent or child of another person
• Be between the ages of 25 and 65, living in the U.S. for at least half the year

To receive the EITC you must file a tax return, even if you owe no taxes.

How To Get The Most Money Back On Your Tax Return

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

Most taxpayers either hope to pay as little income tax as is legally possible or try to receive the most money back as a refund after filing their income tax return. Come tax season, though, if you haven’t researched how to minimize your income taxes, you may end up paying more than the Internal Revenue Service requires.

To reduce your taxable income or receive a larger refund, it’s important to consider if you’re eligible for tax deductions and tax credits and whether you should itemize when you file your income tax return. We look at each of these ways to reduce your tax bill in detail below.

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What Do I Need To Know

The Protecting Americans from Tax Hikes Act made the following changes, which became effective for the 2017 filing season, to help prevent revenue loss due to identity theft and refund fraud related to fabricated wages and withholdings:

• The IRS may not issue a credit or refund to you before February 15, if you claim the Earned Income Tax Credit or Additional Child Tax Credit on your tax return.
• This change only affects returns claiming EITC or ACTC filed before February 15.
• The IRS will hold your entire refund, including any part of your refund not associated with the EITC or ACTC.
• Neither TAS, nor the IRS, can release any part of your refund before that date, even if youre experiencing a financial hardship.

You may get a letter or notice from the IRS saying theres a problem with your tax return or your refund will be delayed. There are many reasons why the IRS may be holding your refund.

• You have unfiled or missing tax returns for prior tax years.
• The check was held or returned due to a problem with the name or address.
• You elected to apply the refund toward your estimated tax liability for next year.
• The IRS is reviewing your tax return.
• Your refund was applied to a debt you owe to the IRS or another federal or state agency.

Claim The Child And Dependent Care Credit

The Child and Dependent Care Credit is based on a percentage of the amount you paid for the care of a qualifying child or dependent.

For tax year 2022,the total expenses you can claim are capped at $3,000 for one eligible individual and $6,000 for two or more. If your employer offers dependent care benefits, you are required to deduct this amount.

• Your child who is under 13 years of age
• A dependent who is physically or mentally incapable of self-care and who lives with you for more than half the year, or
• Your spouse who is incapable of self-care and lives with you for more than half the year

To claim the credit, other criteria must be met.

• You can not file as married filing separately.
• You cant use a caregiver who is a spouse or parent of the child, your child under 19 years of age or another of your dependents.
• Each qualifying dependent must have a Social Security number.
• You must provide the name, address and Social Security number of your caregiver.

For 2021, the American Rescue Plan brings significant changes to the amount and way that the child and dependent care tax credit can be claimed. The plan increases the amount of expense eligible for the credit, relaxes the credit reduction due to income levels, and also makes it fully refundable. This means that, unlike in other years, you can still get the credit even if you dont owe taxes.

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Get A Bigger Tax Refund: Consider Your Filing Status

Your filing status can have a significant impact on your tax refund, regardless of whether youre single or married. For most married couples, it makes sense to file jointly. However, there are some situations where you should consider filing separately.

For example, if you or your spouse has a significant amount of medical or business expenses, filing separately may reduce your adjusted gross income and increase the amount you can deduct . On the other hand, filing separately means you may miss out on some key tax credits. Run the numbers to see which filing status yields the bigger benefit. And if math isnt your forte, you can estimate your return easily with a free tax return calculator.

If youre single, you could look into whether you qualify for head of household status. Generally, you need to have paid more than half the cost of maintaining a household for yourself and a qualifying dependent over the course of the year. For tax purposes, this could mean a child or a dependent adult, including an aging parent. If youre able to file as a head of household it could give your refund a significant boost. For example, heads of household get a larger standard deduction than single filers.

Gather 2022 Tax Documents

Taxpayers should develop a recordkeeping system electronic or paper that keeps important information in one place. This includes year-end income documents like Forms W-2 from employers, Forms 1099 from banks or other payers, Form 1099-K from third party payment networks, Form 1099-NEC for nonemployee compensation, Form 1099-MISC for miscellaneous income, or Form 1099-INT if you were paid interest, as well as records documenting all digital asset transactions.

Ensuring their tax records are complete before filing helps taxpayers avoid errors that lead to processing delays. When they have all their documentation, taxpayers are in the best position to file an accurate return and avoid processing or refund delays or IRS letters.

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How To Budget Your Tax Return And Give Yourself A Financial Edge

When it comes to financial freedom, budgeting is a key piece of the puzzle. Learning how to budget your tax return is the perfect way to start yourself on a better financial path.

Extra money, like a tax return, can give you an edge when it comes to escaping debt and building wealth. When 7 out of 10 people live paycheck-to-paycheck, falling behind is scarily easy.

Your tax return can give you some breathing room. You can bulk up your savings, pay off debts, and start investing. In a word, you can start building better financial habits. Better financial habits today will start to snowball.

Getting your tax return is always a great feeling, and the snowball effect can make that great feeling even better. When it comes to investing and saving, you can see those good financial habits paying off in real-time, month after month.

Getting the hang of how to budget your tax return is hard, but were here to help. Join our community and find tips, tricks, and support for building those healthy habits. From your tax return to an ordinary payday, every Penny counts!

Heres How People Can Request A Copy Of Their Previous Tax Return

• IRS Statements and Announcements

IRS Tax Tip 2021-33, March 11, 2021

Taxpayers who didn’t save a copy of their prior year’s tax return, but now need it, have a few options to get the information. Individuals should generally keep copies of their tax returns and any documents for at least three years after they file.

If a taxpayer doesn’t have this information here’s how they can get it:

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Claim A Deduction For Expenses Incurred In Earning Your Income

As a general rule, you can claim a deduction for any expense incurred in earning your income. Here are some typical deductions:

• transport from worksite to worksite, or when visiting clients or suppliers
• travel, meals and accommodation up to the amount actually spent. Allowances paid by employers are taxable
• tools and other equipment for work purposes .

Access Your Tax Refund Quickly And Safely

If you think you may receive a refund, here are some things to think about before you file your return:

• Electronically filing and choosing direct deposit is the fastest way to get your refund. When using direct deposit, the IRS normally issues refunds within 21 days. Issuance of paper check refunds may take much longer.
• If you already have an account with a bank or credit union, make sure you have your information ready â including the account and routing number â when you file your tax return. You can provide that information on the tax form and the IRS will automatically deposit the funds into your account.
• If you have a prepaid card that accepts direct deposit, you can also receive your refund on the card. Check with your prepaid card provider to get the routing and account number assigned to the card before you file your return.
• You can learn more about choosing the right prepaid card here.

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Use Online Tax Software

These days, you can DIY your tax return and save a bundle on tax filing fees. Online tax software, like TurboTax, makes it easy: you can instantly import tax information from the Canada Revenue Agency with Auto-Fill my return. The software includes a complete list of tax deductions to make it easy for customers to find the deductions that apply to them.

Once your information is entered, a review section offers suggestions on credits and deductions that may apply to your situation, as well as ones that definitely apply. The software then asks simple questions to determine if you qualify and applies credits and deductions automatically based on your responses.

The bottom line?TurboTax offers a cheap and easy way to file your taxes and get the most out of your tax return. Whether youve got a straightforward tax return or a complicated one involving business income and expenses, TurboTax has software suited to your needs at an affordable price. In particular, TurboTax Self-Employed is the only software in Canada designed specifically for people with self-employed income and provides expert guidance specific to these individuals.

What Kind Of Expenses Can You Claim On A Uk Tax Return

Knowing what you can and cant claim on a tax refund is extremely important, as making a false claim could land you in trouble. If unsure, its always best to consult a tax specialist.

So, what kind of expenses can you claim on a UK tax return or self-assessment? Some of the items that you can claim on a UK tax return could include costs for:

• Cleaning a uniform
• Working From Home Allowance

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Figure Out Which Method Is Best For You

When claiming working-from-home expenses, its all about working out which method applies to your circumstances, then determining which gives you the best outcome. To use any method, you must meet the working criteria and record keeping requirements.

You can use the shortcut method, which was introduced from 1 March 2020 and is only available until 30 June 2022. This is an all-inclusive rate of 80 cents for each hour you worked from home.

If you have a dedicated work area, you could use the long-standing 52 cents an hour rate, which Chapman says excludes mobile phone, home internet, stationery and other consumables, as well as the depreciation of IT equipment. Because these items can be claimed separately in addition to the 52 cents an hour this usually gives a bigger claim, he says.

Your third alternative the actual costs method generally produces a bigger deduction than either of the cents per hour methods, but many people find the record-keeping requirement associated with that method too tough, says Chapman.

When You’ll Receive Your Payment

MCTR direct deposit payments for Californians who received GSS I or II are expected to be issued to bank accounts between October 7, 2022 and October 25, 2022. The remaining direct deposits will occur between October 28, 2022 and November 14, 2022.

MCTR direct deposit recipients who have changed their banking information since filing their 2020 tax return will receive a debit card. Debit cards for this group will be mailed between December 17, 2022 and January 14, 2023.

MCTR debit card payments for Californians who received GSS I and II are expected to be mailed between October 24, 2022 and December 10, 2022. The remaining debit cards will be mailed by January 14, 2023.

Refer to the tables below for the latest updates to the payment schedules.

Direct deposits typically occur within 3-5 business days from the issue date, but may vary by financial institution.

Allow up to 2 weeks from the issued date to receive your debit card by mail.

We expect about 90% of direct deposits to be issued in October 2022.

We expect about 95% of all MCTR payments direct deposit and debit cards combined to be issued by the end of this year.

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Get A Bigger Tax Refund: Claim Your Credits

A tax credit reduces the amount of tax you owe to the IRS on a dollar-for-dollar basis. For example, if you owe $6,000 in taxes and claim a credit worth $1,000, your bill drops to $5,000. Certain credits may even be refundable, which means you can claim them even if you dont have any tax liability.

Some of the most common tax credits include:

• The Earned Income Tax Credit allows qualified tax filers to claim up to $6,728 for three or more qualifying children in tax year 2021 and $6,935 in tax year 2022.
• The Child and Dependent Care Credit can provide up to $8,000 in tax credits for qualified filers with one child or dependent in 2021 and up to $16,000 for those with multiple children or qualifying dependents. This credit helps reimburse child care expenses incurred during the tax year.
• The Child Tax Credit is worth up to $3,600 per dependent for tax year 2021, but your income level determines exactly how much you can get. In past years, the credit was $2,000 per dependent.

Your eligibility to claim these and other tax credits typically depends on your income, filing status and whether or not you have eligible dependents. For credits related to education expenses, there are additional guidelines regarding when you can claim them and which expenses qualify.