Millions of Americans have had a job where they were tipped at some point. If you are a server at a restaurant, are a rideshare driver, or work a service industry job, you were probably excited by news that taxes on those tips may go away.
While it hasn’t happened yet, the possibility that workers will no longer have a portion of their gratuity removed by the government is good news for those struggling to make ends meet. Filing taxes can be complicated, particularly for independent contractors, freelancers, and people who work more than one job. As for the current tax season, there are still ways to plan with an eye toward saving a few extra dollars this time around.
Pay Your Taxes on Time
Tax time really does creep up on you, so it’s no wonder that the tradition of procrastinating on one’s taxes is almost as strong as the annual ritual of paying them. If you are among the millions of people in the U.S. who will not owe the government money, then you may be in the clear.
Not true for taxpayers who will owe the government money. Failing to pay can cost you – five percent of what you owe per month, according to NewsNation. People who assume they don’t owe anything on their returns might get away with skipping a year or two, but the government does have a way of catching up to you.
Find Out What Standard Deductions Apply to You
People might be quicker to file if they think they are going to get a check sent back to them afterward. Just think of all the sweet things you could do with that unexpected tax return!
One of the best ways to lower your taxes – and hopefully qualify for a tax refund – is through standard deductions. These are the government’s way of giving tax-paying Americans a financial break. This year, the amount is up by hundreds of dollars for certain groups – over seven hundred dollars for single taxpayers, as opposed to those who file jointly.
But that is just where deductions begin. Although credits are available at the state and federal level, that doesn’t mean everyone takes advantage of them who can.
Take Advantage of Your Filing Status as a Parent!
We hear a lot about the items businesses can claim on their returns – things like new office furniture, software they purchased in the previous tax year, and restaurant receipts for business meetings. Less so regarding the credits and deductions parents may consider claiming. If you had unusual expenses involving a child that was beyond your control, find out if there is a way to turn that into a tax credit. If not, it still may be worth talking to an accountant or tax expert to determine if any of these common deductions apply to your situation:
- The child tax credit that eligible parents get back as a refund can be as high as $2,000. But the amount fluctuates year to year, so be sure your claim is up to date if you have kids under seventeen.
- Did you pay for a sitter while you were job searching last year? Those dollars might entitle you to a credit.
- Yet another potential break for families, the Earned Income Tax Credit (EITC) helps some lower-income parents with an additional refund on their taxes.
- Putting kids through school is expensive! Claiming the tuition to your kid’s college might lower your tax burden. In addition, there may be other, less common education-related deductions. While private school tuition doesn’t typically qualify for any tax credits, it might if there was a specific reason for it, such as a program for children with reading challenges.
Use CFSC Currency Exchange Tax Refund Services
CFSC Currency Exchanges throughout the country want to help you get that refund quickly and directly – no chance of it getting lost in the mail. We know even a small refund can make a big difference when times are tight. Here’s how our tax refund service works:
- Take your tax refund check or debit card to any CFSC and cash it for immediate money in your pocket! No waiting for your funds to clear, we present you with cash right away.
- Haven’t filed your taxes yet? No problem. In NY and NJ, bring us your W-2 (the IRS form for wage earners) along with your phone and ID and you can e-file your taxes with Tax Max.
- Our team will help you get started. You may even qualify for a same-day cash advance up to $7,000.
- If you e-file with Tax Max, your IRS refund check can be sent right to CFSC so you can cash it ASAP.
- Another option: have the money deposited directly into your Yes! Debit™ account or other financial account.
If it’s your first time, call in advance to make sure our e-file service is an option and you know the requirements. Or, stop by a CFSC store with your W-2 and we will help you figure it out.