Refunds for many taxpayers will be the bridge funds that pave the way to the new car, new home, new business or needed vacation. This year the child tax credit is $1,000 per child. The difference between this tax credit and most other tax credit is that it results in a refund check. Most tax credits are used to reduce tax liability and are these credits are applied to tax liability which could increase your refund or lower the payment to the IRS.
There are ways to increase your refundable tax credits, but that is a plan that must be implemented during the tax year and the benefits will be captured at the end of the tax year. Self Employment Tax will be higher this year. Switch to a payroll system which would generate a W-2 instead of a 1099 to capture your earned income then you will give less to Uncle Sam and your refund will be higher.
Make plans during the tax year that will give you a higher refund so that you can get the most out of your spending. The spending moves that result in higher refunds or not expensive and can be implemented by the average person. Make plans for your success and eliminate failure from your future. Find out more by emailing questions to taxmax@rocketmail.com or by following and commenting at this blog.
by Chet Jones
