“Money you don’t claim on your return is money you lose.” This phrase from personal finance experts like Suze Orman resonates more than ever in the U.S. Hispanic community, where every dollar counts.
If you want to make sure you get bigger tax refunds this year, pay attention to these key strategies we share on QueOnnda.com. Don’t let the IRS keep what’s rightfully yours!
1. Take advantage of tax credits
Tax credits are like free money, as they directly reduce the amount of taxes you must pay. Some of the most valuable include:
Earned Income Tax Credit (EITC): Designed for low- and middle-income families, it can mean a refund of thousands of dollars. According to the IRS, one in five eligible taxpayers do not claim it.
Child Tax Credit (CTC): This year, you could receive up to $2,000 for each qualifying child.
Child and Dependent Care Expense Credit: If you pay for the care of a child under age 13 or a dependent, this credit could save you up to $3,000.
2. Declare your deductions
Deductions reduce your taxable income, which can result in a larger refund. Some key deductions include:
Student loan interest: You can deduct up to $2,500 in interest.
Medical expenses: If they exceed 7.5% of your adjusted gross income, they may qualify.
Charitable contributions: Donations to nonprofit organizations can help you reduce your tax burden.
3. Use a tax preparer
According to the IRS, errors on the return can delay or reduce your refund.
An experienced accountant or tax preparer can identify savings opportunities that you might overlook.
If your income is less than $60,000, the IRS Free File program allows you to receive free help.
Tax credits are like free money
QueOnnda.com
4. Contribute to a retirement account
If you make contributions to a traditional IRA before April 15, you may be able to reduce your taxable income.
In addition, you may qualify for the Saver’s Credit, which gives you up to $1,000 back in taxes.
5. File taxes
Many U.S. Hispanics are self-employed or have low incomes and think they do not need to file taxes.
However, if you qualify for the EITC or other tax credits, you could receive a significant refund.
According to the IRS, millions of dollars in tax refunds go unclaimed each year because individuals fail to file.
Optimize your return and receive the tax refunds you are entitled to.
Don’t leave money on the table this year! If you found this information useful, share it with family and friends on social networks.
