8 Tips to Maximize Your Tax Refund

Tax season is here! The IRS just announced that Monday, 1/23/23, was the first day they would begin accepting and processing 2022 tax year returns. The deadline to file is 4/18/23, so save the date on your calendars! If you plan on making some big purchases with your refund, you might want to read on for some tips and tricks to help you get your biggest refund yet.

• Take advantage of an FSA account if your employer offers it. You can save on average 30% by using pre-tax dollars for eligible expenses.
• Donate to charity. You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions.
• Claim credit for energy-efficient home improvements, worth up to $1,200 per year from 2023 through 2032.
• Max out your IRA (traditional, not Roth) to save toward retirement while reducing your taxable income.
• Reconsider filing status if you are married—a marriage penalty could affect your return if you and your spouse have similar incomes.
• Itemize deductions if you have pricy uninsured medical expenses, mortgage interest or taxes, unreimbursed business expenses, or charitable gifts.
• Start your tax preparation now to avoid delays—the IRS processes over 100 million returns each year, and direct deposit is typically the fastest option.
• If you are a gig worker, count your work as income and report your earnings from independent contractor work.

We hope that this information was helpful for you to get your biggest refund yet! For more financial tips and tricks, be sure to subscribe to our Medium page and also check out our website www.tomocredit.com.