Tax season is here and our goals at Xquisite Tax are to find ways to reduce your tax liability, pay no more than you owe, or even increase your tax refund.

Here are 4 strategies to use to make your tax liability is significantly reduced: 

• Choosing the Correct Filing Status – making sure you pick the correct filing status on your return can have a big impact on your potential refund – especially if you’re married.  The majority of married couples file jointly each year, but that’s not always the most beneficial option. Our tax experts will ask you a series of questions to help you decide which filing status is best for your situation.

• Identify Tax Deductions – You may be most familiar with the standard tax deductions, but an Xquisite Tax professional can help you identify many deductions you aren’t aware of, such as state sales tax, reinvested dividends, out of pocket charitable expenses, student loan interest, child and dependent care, etc. These types of deductions can make a significant impact on your return. 

• Make the most of your IRA and HRA contributions – Did you know that you have until the filing deadline (April 15) to make contributions to an IRA (Individual Retirement Account)? A traditional IRA can help reduce your taxable income.

Pre-tax contributions to a Health Savings Account (HSA) can also reduce your taxable income.  Make sure you’re enrolled in an insurance program that meets or exceeds the IRS’s high deductible threshold, and this strategy can significantly lessen your tax burden. 

• Understand Tax Credits – Xquisite Tax professionals will take you through an extensive questioning process, to help determine the max credits that are applicable to your situation. Credits often work better than deductions when it comes to boosting your credit, because they’re a dollar-for dollar reduction of your taxes (e.g. a $100 credit results in $100 off your taxes). 

Most Americans leave money on the table when it comes to taxes. Our goal is to help get that money off the table and into your pockets. Contact us today to see how we can help!