You’ve probably been told that there are a few things you can do to get a bigger tax refund. Unfortunately, many of these “tips” are mistakes that could end up costing you money. In this post, we will discuss 5 of the most common mistakes people make when trying to get a larger refund from the IRS. So before you file your taxes, be sure to avoid these 5 pitfalls!
Things You Shouldn’t Do Just To Get A Bigger Tax Refund
Filing your taxes can be a confusing and daunting process, but it’s important to make sure that you do it correctly. While it may be tempting to fudge the numbers to get a bigger tax refund, there are a few things that you should avoid doing. Here are five of them:
#1 Don’t Exaggerate Your Deductions
- Many people try to inflate their deductions to get a bigger tax refund, but this is a bad idea. First of all, it’s important to remember that the goal of filing taxes is to accurately report your income and expenses for the year.
- If you exaggerate your deductions, you may end up owing money to the IRS if they catch the discrepancy. Additionally, if you are audited, intentionally inflating your deductions is considered tax fraud and can result in hefty penalties.
- It may be tempting to fudge the numbers a bit to get a bigger refund, it’s not worth the risk. Play it safe and only claim the deductions you are entitled to.
#2 Don’t Forget To Report All Of Your Income
- One of the most common mistakes people make when filing their taxes is forgetting to report all of their income. This can be easily overlooked if you receive income from multiple sources, such as interest from investments or rental income from the property.
- However, failing to report this income can have consequences down the road, especially if you are audited by the IRS. In addition, it could result in a smaller tax refund, as your total tax liability will be higher.
- Therefore, it is important to take the time to gather all of your tax documents and ensure that all of your income is properly reported. By taking this simple step, you can help to ensure that you get the maximum tax refund possible.
#3 Don’t Abuse Tax Shelters
- Many people believe that the best way to get a bigger tax refund is to abuse tax shelters. However, this is not the case. Tax shelters are designed to help people save money on their taxes, not to help them get a bigger refund.
- Abusing tax shelters can end up costing you money in the long run. If you’re caught abusing a tax shelter, you may be subject to penalties and interest charges.
- Furthermore, the IRS may disallow your deductions, which could end up costing you more in taxes than you would have owed without the shelter. So if you’re looking to get a bigger tax refund, don’t abuse tax shelters. Instead, focus on other ways to reduce your taxes, such as taking advantage of tax deductions and credits.
#4 Don’t Neglect Filing Your Taxes
- It’s that time of year again when people start thinking about their taxes. For some, it’s a source of stress and anxiety, while others see it as an opportunity to get a little extra money back from the government.
- But regardless of how you feel about taxes, there’s one thing that everyone can agree on: filing your taxes is important. Neglecting to file your taxes can have several consequences, including penalties and interest charges from the IRS.
- In addition, failing to file your taxes can also lead to a smaller tax refund. So if you’re hoping to get a bigger tax refund this year, make sure you don’t neglect to file your taxes. It may not be fun, but it’s worth it in the end.
#5 Don’t Use A Tax Preparer Who Isn’t Reputable
- When it comes time to do your taxes, you want to make sure you get the biggest refund possible. To do this, you need to choose a reputable tax preparer. There are a few things to look for when choosing a tax preparer.
- First, make sure they are registered with the IRS. You can check this by visiting the IRS website or calling their customer service number. Second, ask around for recommendations from friends or family.
- Finally, read online reviews of different tax preparers. Once you have found a reputable tax preparer, be sure to give them all the necessary information about your finances. This will help them get you the biggest refund possible.
While it may be tempting to do some of these things to get a bigger refund, it is important to keep in mind that they are all illegal. If you are caught trying to cheat the system, you could face penalties and fines. It is always better to play by the rules and wait for your tax refund than take the risk of getting into trouble with the IRS. Thanks for reading!