When you have income withheld from your paychecks for income taxes, you may be entitled to get some of that back when you file your tax return. The amount you get back is called your tax refund. Your tax refund can be bigger or smaller depending on how accurately you fill out your taxes. Here are some things you can do to ensure you’re getting every dollar you deserve.
1. Optimize your filing status
The filing status you choose determines the rate at which your income is taxed and can impact the size of important tax deductions, like the standard deduction. Your filing status will be one of these:
- Single – not married, divorced, or legally separated according to state law
- Married filing jointly – married couples who combine their income, exemptions, and deductions on one tax return
- Married filing separately – married couples who opt to file their taxes separately, dividing their income, exemptions, and deductions
- Head of household – unmarried individuals who pay more than half the cost of keeping up a home for themselves and a qualifying person, like a child or dependent parent
- Qualifying widow(er) with dependent child – individuals can use this status for two years following the year their spouse died
If you’re married (including if you just got married this year), then you will have to file as married, but you can choose to file jointly or separately. If you’ve never been married, you’ll probably file as single. But, if you have dependents, you might qualify for the head of household status.
2. Consider itemizing if it makes sense
Deductions significantly impact your total tax bill because they are subtracted from your Adjusted Gross Income (AGI) to determine your taxable income. Essentially, deductions are applied before calculating the amount of your income that is subject to tax.
When you file your taxes, there are two primary deductions you can choose from to reduce your taxable income: itemizing deductions or taking the standard deduction.
Purchasing a home, incurring considerable medical expenses, making substantial charitable donations, or buying a new car could significantly impact your tax situation. These life events might make you eligible for major tax deductions. However, to capitalize on these below-the-line deductions, you will need to itemize your deductions on your tax return instead of taking the standard deduction.
You may choose to itemize if the total of your deductible expenses is greater than the standard deduction amount for your filing status. For 2024, the standard deduction amounts are:
- Single — $14,600
- Head of household — $21,900
- Married filing jointly or qualifying surviving spouse — $29,200
- Married filing separately — $14,600
If your eligible itemized expenses exceed the standard deduction for your filing status, itemizing your deductions could lead to a larger refund or a lower tax bill. However, if your expenses are less than the standard deduction or the difference is minimal, the ease of claiming the standard deduction may be more appealing.
Note: TaxSlayer will compare your options and help you decide if the standard deduction is right for you.
3. Claim all possible tax credits
A tax credit is an amount of money that you can apply directly to your tax bill, so you owe less. Credits can be refundable, partially refundable, or non-refundable. Refundable credit amounts can be added to your tax refund if you don’t owe taxes.
Common credits include:
- Earned Income Tax Credit — A refundable tax credit designed to help low- to moderate-income individuals and families get a tax break, which varies based on income and the number of qualifying children.
- Child and Dependent Care Credit — This is a non-refundable tax credit for taxpayers who incur expenses for caring for children under 13 or disabled dependents while working or looking for work.
- Child Tax Credit — This partially refundable tax credit helps families offset the cost of raising children. The amount is based on the number of qualifying children.
- Residential Energy Credit — This credit is for homeowners who make energy-efficient home improvements, such as solar panels or energy-efficient windows.
- Saver’s Credit — A non-refundable tax credit for low to moderate-income taxpayers who contribute to eligible retirement accounts.
- Adoption Credit — A non-refundable tax credit for qualified adoption expenses paid to adopt an eligible child, aimed at easing the financial burden of adoption.
- Credit for the elderly/disabled — A non-refundable tax credit available to taxpayers aged 65 or older or permanently disabled.
You don’t have to know about all the credits that you can claim, but you should carefully report all your income and expenses. This is because all of TaxSlayer’s products, including the Simply Free package, feature a deduction/credit finder.
When you file with TaxSlayer, you don’t have to necessarily know about all of the tax breaks available to you. As long as you accurately report your information, we will find the credits and deductions you qualify for to guarantee your maximum refund.
4. Remember to report income from your other job(s)
If you earn more than $600 for doing work – even if it’s just a side gig, you’ll need to report that self-employed income. Yes, this could mean you’ll need to pay self-employment taxes during the year. The good news is that you’re able to offset this income by claiming business expenses. This includes a variety of deductions for new businesses. Consider reporting the following expenses related to your work:
- Home office
- Mileage
- Marketing and advertising
- Supplies
- Equipment
- Software
- Computer/phone
Contract workers, freelancers, or people working with rideshare or delivery services might not view themselves as self-employed. However, the IRS considers this self-employed income.
With TaxSlayer Self-Employed, you’ll have a 1099 tax expert in your corner to answer your questions.
5. Compare with last year’s tax return
When filing your tax return, you should always take the time to ensure nothing was missed. If your tax situation this year looks a lot like it did last year, your refund could be relatively the same. You can use your prior year tax return as a benchmark to compare and double-check that you haven’t missed any credits or deductions that you’ve previously claimed. Claiming every deduction and credit that you qualify for helps to maximize your refund.
Note: TaxSlayer makes it easy to upload a prior year return. The data gets imported from your forms, so you won’t have to re-enter information that hasn’t changed.
6. Estimate your tax refund before you file
Did you know you can calculate your estimated tax refund even before the IRS opens? If you’ve received your W-2 (or even if you haven’t), you can enter your income and expense information into TaxSlayer’s Refund Calculator. The tool is entirely free to use, and it gives you a good idea of how much you can expect to receive (or owe) once you file your tax return.
Our refund calculator is updated year after year for any tax law changes. If your estimated refund is less than expected, consider checking your withholding using Form W-4.
Watch this video for more information about receiving your maximum refund:
