Financial expert Rachel Langlois with Cyprus Credit Union shares her tips for getting as much back as possible when it comes to your tax refund. You can go here to find tools available online.
1. What can we do to help make sure we are getting the biggest tax refund possible?
o Make sure to take advantage of all potential deductions or credits you may be eligible for.
o Maximize your contributions to your 2015 IRA before April 15 to reduce your taxable income. You may contribute up to $5,500 and if you are more than 50 years old you may contribute an additional $1,000 for a total of $6,500.
o Utilize the help of a skilled tax professional or an updated software program. You may think you are saving money by doing it yourself, however you may be missing out on credits or deductions that you may be unaware of.
2. What ideas do you have for helping us prepare for next year?
o If you typically don't receive a refund, but are having to pay, and it is difficult to find the money each year, consider adjusting your deductions so that more is automatically deducted or set up and automated savings account.
o Consider refinancing your home. Interest is tax deductible and when you refinance more of your payment is towards interest vs principal so you can receive a bigger tax break.
o Save receipts. Create a folder to keep all your important documents throughout the year to save yourself time and effort.