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The best time to get the biggest tax refund possible in 2022 was before the end of 2022.
Luckily, it’s not too late to attempt a tax year 2022 refund, which is due to be filed by April 18th.
Here are some steps to review before filing your 2022 federal income tax return. This will ensure that you get the largest refund or the smallest tax amount possible at this time.
A bigger refund isn’t always better
Getting a large tax refund may sound great, but it can also mean that too much tax is being withheld from your paycheck. This means Uncle Sam can use your money interest-free for the entire tax year.
If you are unsure whether you are withholding the correct amount, contact the IRS at no charge. Withholding tax estimate tool. Then, if you want to change your tax withholding, fill out Form W-4 to let your employer know the appropriate amount to keep more money for the year.
Now, with that said, let’s see how we can increase our tax refund. please do not With excessive withholding.
1. Contribute to a traditional IRA
You can reduce your 2022 taxable income by making early contributions to your Traditional Individual Retirement Account (IRA) for the 2022 tax year. This generally reduces your tax liability. April 18thThis is because, unlike contributions to a Roth IRA, contributions to a traditional IRA are tax deductible for the applicable tax year. This means your taxable income will be lower.
Even if you contribute to your employer’s 401(k) at work, you may still be able to deposit money in a traditional IRA. However, not everyone can contribute to an IRA, and the IRS limits the amount of donations, so check your IRA account limits.
2. Contribute to HSA
If you have a health insurance plan with a high deductible, you can put money into a Health Savings Account (HSA) for the 2022 tax year. April 18th deadline. Contributing to HSA can help lower your taxable income.
Please note that HSA dollars can stay in your HSA account until you need them. Check your contribution limits to see how much you can deposit into your HSA account.
3. Contribute to the Archer MSA
Self-employed and small business employees can contribute to the Archer Medical Savings Account (MSA) if they typically have health insurance with a high deductible.deadline contribution to the Archer MSA for the 2022 tax year April 18th.
The Archer MSA is similar to the HSA, but it’s a type of tax-advanced account where someone can save money for eligible medical expenses, and contributions are tax-deductible.
4. Pick the most valuable tax filing status
When preparing your tax return, you should decide which tax return status best suits your situation. This is very important. This is because the declaration status determines the standard deduction amount. The standard deduction is the maximum federal income tax deduction most people will receive.
Filing status is basically IRS jargon, so it doesn’t necessarily mean what you think. For example, not all single people should select “single” as their application status. If you qualify for Head of Household or Surviving Spouse status (both of which have higher standard deductions than singles), choosing Head of Household or Surviving Spouse instead of Single can save you hundreds of dollars. You can save more tax. .
Another pitfall to be aware of is that the married separate filing status has its disadvantages. For example, people claiming that status are not eligible for certain tax credits, such as: educational creditAs such, couples should weigh all the pros and cons when deciding whether to file jointly or separately.
IRS free What is my application status? A tool to help you determine the best status for your situation.
5. Make sure you get all the tax breaks you qualify for
With many tax credits returning to pre-pandemic limits or being phased out entirely in the 2022 tax year, your refund may be less than when you last applied. That’s why it’s especially important to take your time and make sure you’ve received all the credits and deductions that apply to your situation.
Not sure what credits or deductions you’re eligible for? Visit the IRS website Check for anything you missed before submitting.
6. Get a Second Opinion
Whether you meet with a paid tax attorney or one of the many licensed tax attorneys nationwide, consider getting your tax return reviewed before you file it to make sure you haven’t missed any deductions or deductions. please give me.
free program Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) are free to file your tax return, but you may need to make an appointment to meet with one of our volunteers.