How to lower your tax bill depends on your personal situation. If you are single with no children, there are not a lot of ways to lower your tax refund.
Taxes simply put, comes down to your total income and deductions and credits. Some things that can potentially give you tax credits to lower the liability would be as follows:
- The Residential Energy Credit- If you made certain home improvements such as adding solar to your home, you could claim a credit of 30% of the total cost of the project. This is a non refundable credit, however, it can be carried forward until 2032 when the credit is set to expire or until used up whichever comes first.
- Home Improvement Energy Efficient Credit- if you make improvements like replacing your windows, heating or air system, or heat pumps, you can claim up to $3,200 in credits.
- Purchase an Electric Vehicle that qualifies for the EV Credit-New. If you are married filing jointly, the income limit is capped at $300,000, any other status it is $150,000 and is worth up to $7500.
- Contribute to an IRA
- Increase your W-4 withholdings. However, this is really only loaning the government your money. You are not getting anything extra back by doing this.
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