Smart Financial Planning: Maximizing Your Refund in the New Tax Year

It's the most wonderful time of year. The weather is warm, you've got your tax return in hand and your refund is looking pretty good. But if you want to maximize this tax season (and make sure that next year's refund isn't just a repeat performance), there are a few things you should know about how to get the most out of your refund.

Get everything in on time.

The IRS won't accept your return if you don't file it by the deadline, so make sure you have all of your information together and ready to go before April 15th. If you're worried that something might slip through the cracks, here's what we recommend:

Don't forget about the taxes you owe.

The IRS is not the only party that wants to get paid. If you are owed taxes, report them and make sure they are paid by April 15th of this year. 

If you haven't filed your return yet, don’t wait and file it as soon as possible but with tax planning. You can also check on how much money was withheld during the year or estimate what should have been withheld at certain points in time (e.g. when you had an increase in income).  

Make sure your refund is accurate and you've included everything you should have.

When you file your tax return, it's important to make sure that you've included everything you should have. If a payment is due and not made, the IRS will issue a notice saying so. This may lead to an additional penalty or interest charges if they're not paid within 30 days of receiving them. If there are any mistakes on the form(s), double-check them before submitting them again!

Don't delay the closing of your taxable accounts.

If you want to maximize your refund, you must pay attention to the closing dates for any taxable accounts. Generally, these should be closed by December 31 of the tax year they were opened. This way, if there are any tax deductions available from those accounts (such as interest), they can be claimed before filing your return with Uncle Sam—and therefore maximize their impact on your return! 

If you don't close these types of accounts by December 31st, then they'll remain open and will not allow any additional deductions or credits beyond what was initially claimed on their original documents. This means that if something happens between now and then such as an unexpected expense or loss due to negligence on our part...well...it could mess up everything we've worked hard for all year long!

Must Read:- Top 10 Tax Planning Strategies in 2023 for Small Businesses

Consider how to use tax-advantaged accounts for retirement or 529s if you have one.

A 401(k), IRA, or 529 plan can be used to pay for higher education expenses. If you have one of these accounts and your child is ready to start college in the fall, it's time to consider using the money in this account for tuition. You may also want to consider using some or all of your retirement savings if they're available—because they're tax-advantaged and offer better returns than stocks and bonds—to pay off debt on credit cards or other loans before taxes are taken out of them.

Review all of your deductions, credits, and exclusions thoroughly to see which ones can be claimed again this year or next year. 

This is a good time to take a step back and review all of your deductions, credits, and exclusions thoroughly to see which ones can be claimed again this year or next year. 

Taxes are complicated, but some rules apply to all taxpayers (including you).  you need to hire a tax accountant in colorado springs, You cannot just claim everything you think is deductible; some things may have changed since last year's taxes were filed. For example: 

• Commissions paid on investments held over 6 months qualify for the long-term capital gains rate of 0%, but if the investment has been held for less than 6 months then it doesn't qualify for this lower rate.

If you're getting a tax refund, consider donating some to charity or paying down debt.

You can donate to any nonprofit organization that helps people in need. You'll feel good about yourself and your community at the same time!

Know what's been done with previous years' returns

If you've been around the block a few times, you'll know that tax season is usually the most complicated. 

To help make this year's tax return go smoothly: 

• Know what's been done with previous years' returns and information to make sure this year is accurate and complete. 
• Make sure your computer has all of your old W-2s and 1099s for previous years so that there are no mistakes during this process (and don't forget about any other important documents).     

Maximizing your refund is easier than many people think, but it helps to know how

There are many ways to maximize your refund. Here are some of the most common ones: 

Know what you owe. If you're not sure whether or not you owe a refund, it's time to make sure! Check out IRS data on taxes paid by taxpayers in America, which shows that the average taxpayer owes $2,876 in taxes this year. That may seem like an astronomical amount of money—but it can be reduced by claiming things like deductions and credits that reduce what's owed on your return (and potentially increase the amount of money returned). The next step is figuring out if there's anything else worth claiming so that when all is said and done, there isn't too much left over after paying off debts or saving for another goal (like retirement).

Read Also:- Key Tax Deadlines in 2023 for Small Business Owners

Conclusion

We've covered a lot of ground here. But remember, the most important thing is to keep it simple. If you're looking for more guidance on how to maximize your tax refund, contact Answers! Accounting CPA. Our experts do some research before filing your return and ensure everything is in order. Once you've done all that, get ready for an exciting season as we move into April!