|Tips on How to Maximize your Tax Return|
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Maximize your Tax Return
Tips to Help You Get a Bigger Tax Refund
“It’s also important to know that when taxes go unpaid, the IRS can place a lien on your assets.Unpaid tax liens can remain on your credit report for up to 15 years, while paid tax liens can remain on your credit report for seven years from the date paid. Both have a negative impact on your credit score,” said Maxine Sweet, vice president of public education for Experian, the national consumer credit reporting company.
Having time to pull together the information you need, analyze it and calculate your taxes means you won’t be frantically scrambling to find your W-2 form the day before taxes are due. Starting early also gives you time to double check your tax return for any mathematical errors, and to make sure you’ve claimed all the deductions for which you qualify.
Tax laws and people’s tax situations change from year to year, so you may be entitled to different deductions this year than last year. Major life changes often trigger a modification of deductions, or there may be deductions that you have missed in past years. Here are a few examples of common, but often overlooked, deductions. Check with your financial advisor if you have questions, or you can get more information from the IRS Web site or helpline.
These are just a few of the legal tax deductions; there may be others you can claim. “Be sure you have proper documentation to back up any deductions you claim,” says Sweet. And remember, while it may seem like a windfall to get a large tax refund, your goal should really be to break even. If you’re getting a refund, you’ve basically been loaning the government money - without interest.
While you’re focused on financial issues, take a few more minutes to check your credit report and make sure you’re on track with your financial plans. Web sites like www.experian.com give you quick and easy access to your credit report and credit score. Make sure all the information on your credit report is accurate. If you notice anything questionable, such as accounts you don’t recognize, or payment disputes, resolve those issues by contacting your creditors and the credit reporting companies.
For more information on checking your credit report, visit www.experian.com.
Courtesy of ARA Content