Maximize Your Federal Income Tax Refund

Executive summary About Maximize Your Federal Income Tax Refund
By Frank W Ellis

Federal Income Tax Refund

Learning how to maximize your tax refund, can pay you big money at tax time. With the help of a tax deduction maximizer you can increase your Federal Tax refund by 15%, 25% or even 50%.

How does a deduction maximizer work to increase my tax refund?

Tax deductions and credits are what enables you to reduce the amount of tax you pay, or to get a larger tax refund. You may be tempted to settle for standard tax deductions and credits, and wind up paying the IRS more than you should. The deduction maximizer will alert you to overlooked tax deductions and credits you may qualify for.

Here are a few of the over 350 free tax deductions and credits available to you:

Home mortgage interest, real estate taxes, property taxes

Education expenses

Earned income credit, child tax credit, child care credit

Energy tax credits

State and local income taxes

Charitable contributions

Home office deduction

Medical and dental expenses

You could spend a lot of money, paying a tax accountant to find these overlooked tax deductions and credits, but you no longer have to. Many taxpayers settle for the standard deduction rather than exploring the many tax deductions available to them. Before you settle for the standard tax deductions, take a few minutes to explore the over 350 Federal tax deductions and credits.

It’s a great way to fatten your income tax refund!

Tax Refund Anticipation Loan – Consumer Advisory

Executive summary About Tax Refund Anticipation Loan – Consumer Advisory By Ron Finkelstein

This tax season 10% of Americans will let someone borrow them their own money through a refund anticipation loan. A rapid refund is just your income tax refund given to you on the spot by your tax preparation service- usually within 1-2 days.

Rather than waiting for your tax return to come through the mail or via direct deposit directly from the government some people are choosing to get money in their pockets immediately at a great expense to themselves. Despite the length of the loan lasting only about 10 days they are costing individuals hundreds of dollars in some cases.

Predatory Lending

Overall this predatory lending practice is estimated to cost Americans as a whole about 500 million dollars a year. Those targeted most tend to be recipients of EITC, the Earned Income Tax Credit. They recently accounted for 55% or refund anticipation loans.

The program, formed in 1975 to help low wage workers is being undermined by tax preparation services that are eating away at these refunds. Refunds that are being awarded based on the EITC cornerstone that qualifiers for EITC get most of the federal taxes refunded in an attempt to relieve poverty for hard working people.

Tax Education

People need to be educated that they don’t have to give up their money in the first place. Employers will let workers change their W 4 forms to adjust their withholding to more closely match their tax responsibility. That way, people aren’t paying out their wages in taxes throughout the year unnecessarily in the first place. People also need to be educated that electronic filing is free for many people now and with direct deposit it only takes about 10 days to get a refund.

Tax Help

If your financial life is difficult its important to weigh the benefits and drawbacks of getting money fast vs. getting more money by waiting only 8-9 more days. Free filing is available to those who qualify using the criteria that can be found at www.irs.gov. Assistance from the Volunteer Income Tax Assistance program is available for people with incomes less than $35,000. Explore your options and be patient- it might save you a couple hundred dollars or more.

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