Choosing to file separate returns can have its drawbacks, such as losing certaintax deductionsand credits available to joint filers. You'll need to weigh this carefully to maximize your refund potential. Also, both spouses must take either theStandard Deductionor itemize their deductions. You can...
If you have debt, funds from your tax refund can help contribute towards paying down those bills—it might boost your credit score too. You can increase your purchase power by using your tax refund to fund a secured credit card. Is the money from your tax refund giving grand ideas of spe...
Resist temptation to book a vacation with yourrefundand tackle that debt instead. Start with debts with the highest interest rates; eliminating these will save you the most money in the long run. If you don't have any credit card debt, use your tax refund to reduce your car or student ...
“However, you need to make sure you’re claiming all the credits and deductions possible.” “If you want a larger refund next year, consider filling out a new W-4 and asking your employer to withhold more income tax from your paycheck,” he adds. Remember, though, that a larger tax...
Tax Credits vs. Tax Deductions Tax credits reduce tax liability dollar for dollar, while tax deductions reduce taxable income. Jessica WalrackMarch 31, 2025 16 Things to Do When You're Deep in Debt There are many strategies consumers can use to deal with their debt and get ahead. ...
Get tips House of Savings Play our fun, interactive game to learn simple ways to save energy. Play now The power of savings Reduce your energy use and lower your bill with rebates, tax credits and energy-saving programs designed with you in mind. Ai...
Tax credits reduce tax liability dollar for dollar, while tax deductions reduce taxable income. Jessica WalrackMarch 31, 2025 16 Things to Do When You're Deep in Debt There are many strategies consumers can use to deal with their debt and get ahead. ...
Even if you don't itemize your taxes, you should still look to take tax credits when applicable. Doing so can reduce your tax liability on a one-to-one basis, e.g., if you owe $3,000 in taxes but then claim a $1,000 tax credit, you would only owe $2,000. ...
2. Earth-friendly federal tax credits As part of the Inflation Reduction Act, which began rolling out in 2023, tax credits are available to people who have made their homes and vehicles more energy efficient. Energy Efficient Home Improvement Credit.Opens in a new windowYou can get a 30% cr...
Investopedia'sTax Savings Guidecan help you maximize your tax credits, deductions, and savings. Order yours today. Can I Get a Tax Deduction for Donating to a Tax-Exempt Organization? Not necessarily. In order for your donation to be tax deductible, it must go to a group that has had 501...