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Could Your New Year’s Resolution Boost Your Tax Return? IRS Says It Could!

Could Your New Year’s Resolution Boost Your Tax Return? IRS Says It Could!

01-2018

By: Oana Schneider

Could Your New Year’s Resolution Boost Your Tax Return? IRS Says It Could!

Happy New Year, everyone! From everyone at your favorite BBB®, we wish you a great, wonderful New Year! And if saving money is on your mind, the IRS has a few tips that could boost your tax return:

  1. Save for retirement

If you open an IRA, 401k or a similar retirement account before April 15, 2018, you may qualify for the Saver’s Credit, which is worth $1000 for individual filers and $2000 for married couples who decide to file jointly. To claim it, use the IRS form 8880, or talk to a local accredited tax preparer about your eligibility for the credit when filing your taxes.

  1. Take some classes

If you’ve been thinking about taking night classes but couldn’t figure out the financials, you can use The Lifetime Learning Credit (LLC). This credit is nonrefundable, which means it’s limited to your tax liability (for example, if you qualified for the full $2000 LLC but your tax liability is only $1000 for the year, the credit you will receive will be $1000).

  1. Keep track of your personal finance

Another good idea would be to adjust your W-4 at the beginning of the year. This form tells your employer how much money you would like to hold out of each paycheck for tax purposes. The more money you put aside to cover your taxes, the better the chances to receive a big tax return in the spring. For more information on how to adjust your W-4, click here.

And remember to keep reading The Beacon and follow your favorite BBB on social media! Thank you for being our fan for so many years and Happy New Year!

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Oana

Oana Schneider is our Director of Media Services. She writes consumer and business oriented articles and is in charge of our community outreach program.