Banking on a big tax refund? Write-offs play a big part
We’re just one day into the tax season, but some people are already banking on big refunds that could come their way.
Tax write-offs are a huge part of getting some money back, and KIRO 7 spoke to a tax information officer from tax preparation service Jackson Hewitt about how they can help taxpayers filing this year.
Mark Steber, the chief tax information officer for the firm, stresses that tax write-offs should not be overlooked since they could have a big impact on how much money people get back.
“I’ll simply say the write-off that you forget is the most important write-off,” said Steber.
Steber says rushing through your taxes may bring peace of mind that the process is over, but it also carries the risk of forgetting a lucrative write-off.
So his advice is to slow down and take stock of everything when filing your tax return. The Earned Income Tax Credit is one major thing that’s often overlooked. Steber estimates that one in five taxpayers forget it each year. He says that credit can go up to $6,400 if you get the maximum.
He also says many people leave off deductions if they’re self-employed or have a small business. There are write-offs for people in those categories that should be investigated. Home offices can be a write-off most don’t think of even in the era when many people have significant amounts of time working from home. Shared custody issues can make situations where people forget to file for those write off-options.
Steber says one of the biggest misconceptions is people believing the IRS will notice that they did qualify for a write-off and fix it for them, which could not be farther from the truth.
“If you leave off a benefit, if you leave off a credit, the IRS does not go back and review it and send you more money. Leave it off -- stays off,” said Steber.
Steber also suggests taxpayers go to whomever they are working with on their taxes and do a review outside of tax season to see what write-offs could be found for the next tax cycle.
