Jul 042011
 
NEW YORK - APRIL 15:  Pedestrians walk by a St...

Image by Getty Images via @daylife

Do you want a larger refund on your taxes this year? Follow these tips and increase your refund, avoid penalties from the IRS, and get your money back quicker.

1) You should keep track of your business related mileage. If you have two jobs you can declare the distance from the first job to the second. If you have one job, you can not claim mileage but you can use the mileage to seminars and workshops. You can claim the expenses of taxis, hotels, tips, planes, trains and car rentals on business trips.

2) Do you keep track of all your medical expenses? You have to spend 7.2% of your income for medical costs to count. Keeping records of your medical bills should be a priority. Have a special folder for this area. Try to make uncovered personal medical costs into a business expense.

3) You can claim necessary business meals and entertainment up to 50%, but you can’t claim entertainment for personal reasons, and the IRS will give both you and your employer difficulty if you attempt to.

4) Keep organized records of your expenses. Then, you will be prepared at tax time and will have documentation if the IRS questions something on your return. Your previous income tax returns should be kept in your records.

5) Do you need money back faster? File your income tax electronically. It comes back faster and is checked for errors. Another bonus is you will receive a confirmation of your return.

6) Do not obtain a loan to receive your refund faster. If you are paying someone to do your return, or you are preparing it yourself, it makes sense financially to wait for your money. High interest rates are charged for loans.

7) Make sure your taxes are submitted before the IRS deadline. You can ask for an extension if your prior tax returns were filed properly. Be aware of all IRS deadlines to avoid penalties!

It is an excellent idea to make use of tax breaks and keep good records of your expenses.

Josh T. is an avid reader and in his spare time he helps people with tax questions. When he is not helping others, he works for a tax resolution firm.

 Posted by at 3:54 pm

Sorry, the comment form is closed at this time.