3 Tips To Maximize Your Income Tax Refund

It is almost tax time and while there is nothing you can do to avoid the taxes you can take a few small steps to maximize the refund that you can potentially get.

1. Charitable donations: I am not saying that you should give to charity JUST to have something to write off on your taxes. But if you were going to donate to charity already now is a great time to get in those last minute donations. Just make sure to get a receipt if you give items instead of cash because you will need the dollar value to place on your tax forms.

2. Medical deductions: You get to deduct your medical bills in the year that they are paid, not just in the year that are charged. So if you have an upcoming bill for 2013 that you were going to wait until January to pay you might as well dig it out now. If you can get your medical bills up above 7.5% of your income then you can deduct the excess and have a potentially larger refund than you were expecting.

3. Retirement savings: Now is the time to max out your 401K contributions if you have not already done so. The amount that you contribute this year is deductible on your taxes so go ahead and sock away the max that you can for your retirement now and reap the rewards once you file!!!!

Author: Lulu

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