The average individual tax return amount is $2,354.
Did you get that much last year? If you didn’t, you should see what the IRS has to help you.
As long as you have kept organized records in the form of receipts, payment records, documentation regarding investments and wages earned, you are ready to begin learning how to maximize your tax return. Take a gander at some of these simple ideas that people forget more often than not.
- Know Your Deductions: There are a slew of deductions and tax credits that are unique to 2009 tax returns. Because of the 2009 Recovery Act, tax returns could include breaks for new vehicle purchases (sales tax), first time home ownership and home retrofitting for energy efficiency. Additional write-offs such as a child tax credit, earned income tax credit and alternative fuel vehicle credit may also work in your favor.
- Try E-Filing: The IRS has certainly kept up to speed with technological advancements and these newer systems are a way to help maximize your tax return. E-filing, E-payments and direct deposit can help millions of tax payers get their income tax return in as little as 10 days. Electronic filing begins on January 16, 2010.
- Get Free Filing: For those whose individuals whose earnings do not exceed 56k annually, the IRS has a free tax preparation and service for them. 98 million Americans can tap into this valuable freebie perfect for maximizing your tax return.
- Use the Government’s Tax Friendly Website: The government is certainly keeping up with the “Jonses” of the tech world, as their site now features podcasts providing instructions for tax filing, tips, fact sheets and news releases. The IRS just overhauled their site so finding this information will be easier.
If you are a cash strapped tax payer fearful of filing this year, your best bet is contacting the IRS directly.
The government is sensitive to the financial needs of the masses and have granted IRS representatives more freedom to work directly with tax payers. Flexible payment schedules to collection suspension for hardship are only a couple of the ways you can maximize your tax return. But you must take the first step and contact the agency in order to proactively participate in the tax paying and return experience.
What are you doing to make sure your taxes turn out for the best?