If you’re expecting a refund, you’ve probably already scoured the list of tax credits and deductions looking for every extra dollar you can claim. But in all that scrutiny, you may have overlooked the biggest tax boost of all.
So what’s the secret to a heftier refund? Hire a tax pro.
We know. Forking over cash may seem like a weird way to save money. But what if we said you could end up with hundreds of dollars more in the end? It’s true!
According to a survey of Dave Ramsey’s Facebook fans, folks who did their own taxes got a refund of about $1,800. That’s nothing to be disappointed about . . . until you discover that folks who had a tax professional prepare their taxes got more than $2,600 back from the IRS. That’s an $800 difference!
Most people would agree $800 is a big chunk of money. But just for fun, let’s put it in perspective. Here are a few ways the average American could use that extra $800 to stretch their budget:
- Eat out for four months
- Buy groceries for two and a half months
- Cover their clothing budget for nearly half the year
- Buy gasoline for four and a half months
- Fund their entertainment budget for four months
Even better, why not use that $800 to speed through the Baby Steps? Imagine how awesome it would feel to be $800 closer to a debt-free life or a fully funded emergency fund. Maybe that $800 is the boost you need to jump-start your retirement savings or your kid’s college fund. Wherever you set your sights, there’s no doubt $800 will help you reach your goal faster.
Seems like it’s worth the effort to work with an expert who will make sure you don’t pay a penny more than you should at tax time. And while you’re at it, ask your tax pro to calculate the proper amount of withholding you need on your W-2 to avoid a large refund next year. That way you’ll have more money in your paycheck all year long!
—Used with permission from DaveRamsey.com