Yesterday we shared five ways to boost next year’s tax refund now, and you’re in luck: we have five MORE ways you can put more money in your pocket in 2018.
Now that your tax return has been filed, you may be ready to put taxes out of your mind until next year. But wait! If you want to maximize your tax refund next year, here are five more things you can do:
- Buy your own home. You’ll build financial security and save on your tax bill, because mortgage interest and property tax deductions will boost your refund. And don’t forget that points paid when you acquire your home are tax deductible in that year.
- Go solar. Because solar energy is so efficient, the government is offering a tax credit up to 30% of what you spend for solar energy systems and geothermal heat pumps, as well as small wind turbines.
- Contribute to retirement plans. Putting money into an IRA will boost both your tax refund and your wealth. You have until the tax deadline or the day you file next year to contribute to your IRA and take a deduction when you file your taxes. But many people simply don’t have the funds to contribute when they get ready to file. That’s why you should start contributing now, a little each month. If your employer matches contributions you may want to contribute to your 401(k) instead, and if you are many years away from retirement, a non-deductible Roth IRA may save more taxes in the long run, since the earnings are non-taxable when you withdraw them in retirement.
- Deduct your business expenses. If you work for yourself, keep track of car mileage, business dinners, computer use, daily appointments, and anything else that could help you to substantiate your deductions. Put your children to work by paying them reasonable wages to help you with age-appropriate jobs in your business. A child can earn up to $6,300 without paying federal income taxes.
- Get married. Timing your marriage can make a difference: If both you and your beloved are employed, you might pay more taxes as a married couple, so it might be better to marry the following January than December. But if one of you earns most of the money, you might pay less, so a December wedding might be wise. You can use TurboTax or TurboTax TaxCaster to estimate which time would be better for you.