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If your goal is specifically to get a bigger refund at tax time, that means you want more tax withheld from your paychecks than you actually owe. This essentially gives the government an interest-free loan throughout the year, which is then returned to you as a refund.
Here's How:
- Increase Paycheck Withholding (Most Common):
- Federal (W-4): Use the IRS Tax Withholding Estimator (IRS.gov/W4App). Enter your income, deductions, and credits, then specify a higher "desired refund" amount. The estimator will advise you on how to adjust Step 4(c) (Extra Withholding) on your Form W-4 and your spouse's W-4 (if applicable). Submit new W-4s to your employer(s).
- State (State W-4): Locate your state's withholding form on its Department of Revenue website. On this form, either reduce the number of allowances/exemptions claimed or, more precisely, enter an "additional amount to be withheld" per pay period. Submit the updated form to your employer.
- Overpay Estimated Taxes (For Non-Wage Income):
- If you have income not subject to withholding (e.g., self-employment from your LLC, investments), intentionally pay more than your calculated quarterly estimated taxes to both the IRS and your state.
- IRS Estimated Taxes: IRS.gov/estimatedtaxes
- State Estimated Taxes: Search "[Your State] estimated tax payments" on your state's tax website.
- Maximize Deductions & Credits:
- Reduce your overall tax liability by maximizing eligible deductions (e.g., pre-tax contributions to 401(k), HSA, IRA) and tax credits (e.g., Child Tax Credit, education credits). The less you actually owe, the more of your over-withheld money will come back as a refund.
- IRS Publications: Refer to IRS.gov for detailed publications on specific deductions (e.g., Pub 525 for retirement plans, Pub 969 for HSAs) and credits (e.g., Child Tax Credit, Education Credits).
Helpful Links:
Please feel free to reach backout with any additional questions or concerns you might have!
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