How to get a bigger tax refund next year

We’re a month into the new year, and that means W2s are in the mail. For some, it means a nice bonus after the Christmas season. For others, it means keeping your fingers crossed that your tax liability won’t be more than what you’ve already paid. If you’re looking for ways to decrease your liability and increase your refund, here are few ways you might be able to just that…

Increase your charitable giving: You can claim donations on your tax return if the organization you’ve donated to is a tax-exempt 501(c)(3) organization such as a church or the  American Red Cross. And not only will you be able to claim the deduction, but you’ll be able to help out an organization that you’re passionate about.

Change your filing status: If you’re married and filing jointly, you may be able to get a bigger refund if you file separately. While it might be more work to file separately, it could be worth it if you’re looking for a few extra bucks. If you’re not sure about changing your filing status, consult a tax professional and get their opinion.

Increase your retirement contributions: When contributing to a traditional IRA or 401k plan, those contributions come from pre-tax dollars. By lowering your taxable income, you’re paying less to the government, while also putting more away for the future.

Claim refundable tax credits: If you’ve got kids, you may be missing out on an opportunity to claim the Earned Income Tax Credit. The amount of benefit you receive is dependent on your income and the number of children you have. This often-overlooked tax credit may be something you can take advantage of.