How to Maximize a Tax Refund

Are you hoping to get a nice tax refund?

Last year’s average tax refund was almost $3,200. Reports are that refund amounts are likely to drop due to changes made by the IRS, but be optimistic and start working on your tax return now. Gather essential documents and set aside time to fill out the forms. Seek help from trusted individuals if you’re new at the process or have a complicated filing. IRS.gov has helpful information, as does 1040.com, TurboTax, Forbes, and others. For fast refunds, file early, online, and use a direct deposit option. Early filing can protect you from identity theft. Review all possible deductions or credits and max out your retirement plan contributions. Funding an employer-sponsored 401(k), 403(b), IRAs, or other tax-deferred retirement accounts will reduce taxable income for the year.

Unfortunately, you must watch out for tax scams and fraud. Do not respond to phone calls or emails from anyone claiming to be with the IRS or the U.S. treasury. The IRS will only correspond with you via U.S. mail unless you go into litigation. Also, only use registered tax preparers and guard yourself from anyone who promises you a bigger refund! So, “render to Caesar the things that are Caesar’s, and to God the things that are God’s.” (Matthew 22:21) Caesar may get some of your money, but God should get all of your heart. 

If a tax refund won’t pay off your credit card debt, contact Christian Credit Counselors. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.