“`html

Maximize Your Tax Refund with These Tips

A tax refund is the difference between the amount you paid in taxes throughout the year and what you owe when you file your return. For example, if you had $10,250 withheld from your paychecks in 2022 and end up owing $8,500 in taxes for the year, you’ll receive a refund of $1,750.

According to the IRS, the average refund dropped from $3,536 in 2022 to $3,140 for the first half of the 2023 tax filing season, largely due to pandemic tax credits coming to an end. If your refund looks smaller this year, double-check your return for common credits and deductions. These six tips may help you lower your tax bill and increase your tax refund.

1. Try Itemizing Your Deductions

Most taxpayers use standard deductions based on their filing status, but you may benefit from itemizing your deductions if you have large expenses like mortgage interest, medical bills, and charity donations. It’s only worth itemizing if your total deductions exceed your standard deduction.

2. Double Check Your Filing Status

Consider your options if you’re single with qualifying dependents or married filing either separately or jointly. Head of household filers, who are unmarried with qualifying children or other dependents, get a bigger standard deduction and more generous tax brackets.

3. Make a Retirement Contribution

Contributions to a traditional 401(k), 403(b), or other employer-sponsored plan, or to a traditional IRA, are tax-deductible in the year the contribution is made. For the 2022 tax year, you can contribute up to $20,500 to an employer-sponsored retirement plan and up to $6,000 to an IRA.

4. Claim Tax Credits

Many tax credits that lower your tax bill dollar for dollar are still available. Common tax credits for the 2022 tax year include the Child Tax Credit, Child and Dependent Care Credit, Earned Income Tax Credit, Energy-Efficient Home Improvements, and Electric Vehicle Credit.

5. Contribute to Your Health Savings Account

Contributions to your health savings account (HSA) are tax-deductible. Individual taxpayers can contribute up to $3,650 to an HSA for 2022, with an additional $1,000 contribution if you’re age 55 or older. Families can contribute up to $7,300.

6. Work With a Tax Professional

A qualified tax professional can help you find all of your available credits and deductions, make decisions about your filing status and eligible dependents, and plan for the tax year to come. Their expertise can be invaluable, especially if you have investment income, a side business, or inherited money.

The Bottom Line

One way to increase next year’s refund is to adjust your withholding. By contributing more toward your tax bill with each paycheck, you’ll increase the amount you pay in during the year and thereby increase your chances of getting a bigger refund. However, most tax experts advise against planning for a really big refund, as you’re essentially loaning the federal government money for free.

Many taxpayers enjoy getting a refund at tax time as it can feel like a reward for doing your taxes. Focus on getting the biggest refund you can: The bigger the refund, the better.

If you’re not sure where to put your tax refund, consider the Experian Smart Money™ Digital Checking Account & Debit Card. It can help you build credit without debt by linking to Experian Boost®ø, which gives you credit for eligible bill payments after three months of payments. You’ll also pay no monthly fees¶ and have access to more than 55,000 fee-free ATMs worldwide**. See terms at experian.com/legal.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey with confidence.

“`