Income tax refunds are among the best moments in a taxpayer`s year. Everyone wants to get some money back when the tax refund moment comes, but if you want to get the most of the income tax refund, you need to do something about it as well. The money you get back can represent a great boost for you, so why don`t you try to get the most out of them? Here is how.
Pay your debts
The first step is, of course, paying your debts. However, you should focus on the high-interest debts first. The credit cards usually have high interest rates, so you should pay some of the debt and you will be saving 10 to 30% interest charges. This is a wise choice when it comes to tax refund, as it is a guaranteed return for your money.
An extra payment
If you want to get the most of your income tax refund, paying an extra sum in your mortgage is a very good idea. When you will make an additional payment for your mortgage, it goes straight to the principal. You will save money on your interest and reduce the entire time of paying the loan.
There are many things you can do to increase your income tax refund, but usually there are some questions about it as well. Here are the most common ones and some short guidance.
- How can I find out more about what can I claim? – If you are looking for more info on claiming you should start with the tax office. You will find there free information and detailed guiding that will help you in the taxation matters.
- Should I claim the rental costs – Yes, you should and you must look deeper into it before you get started.
- How will my refund come? – It usually comes in a check but you can also file an e-tax lodgment and the return will be made in two weeks time.
- Can I get any free help with the tax refund? – Yes you can, but only if your income is lower than $40.000 per year. You can get some help from a tax trained volunteer. Call the tax office to find out more.
- If I have donated money to charity, can I claim it in my tax refund? – Yes, it is possible to claim your money back. The deductions will depend on what sum you donated. You need proof of all your donations.