It is necessary that you make sure that you plan properly whenever you are after a bigger tax refund. You will certainly need to ensure that you do proper filing of your taxes. There are a number of predefined circumstances that allow for better tax refunds. It is however necessary that you understand that there are certain aspects that are predominant in this matter. They include the following.
Your gross yearly income is what we look at first. You will note that you will be taxed between ten and close to forty percent of this income as tax. You will find that you will be taxed more as your income increases. Total earnings will in most cases be premised on all sources through which you get an income. This will often include wages and even tips. You will witness that indeed there are certain taxes that are withheld by the federal state. Ideally, these are just but estimates of what you might be owing the government by the end of the year. This estimates can be deducted at the end of each quarter of the year. You will note that a tax refund will only come about if there is an overpayment on these estimates. You will therefore need to ensure that you follow up on the accuracy of these information.
You will realize that your personal allowances will have a say on the kind of tax refund you will receive in the long run. You will realize that the number of allowances that you will illustrate will be definitive of the amount of federal tax that will be withheld at the end of the day. This is what will influence the amount of tax refund that you ae likely to get at the end of the day. If indeed you take home a relatively less friendly paycheck each month after claiming a near nil exemption, there is a high possibility that you will get a better tax refund at the end of the year. The filing status is very important too. There are a number of times that married people will have to file their tax returns independently. This is because it may result in a higher tax refund.
The number of dependents plays a significant role in determining the amount of tax refund. You will note that your tax will go down with an increase in the number of dependents that you have under your roof. Credits and even deduction matter a lot too. They will actually maximize your tax refund. They will take into consideration credits for things like home improvements and even higher education. You will also note that if you contribute towards your retirement plan, you will get a bigger tax refund.