The information in this article is up to date for tax year 2025 (returns filed in 2026).
Who doesn’t love that tax time payday? The larger your tax refund, the bigger the celebration! While the average refund hovers around $3,000, not everyone is so lucky. If you ended up owing the IRS or received a tiny refund this year, don’t worry! We’ve got some tricks lined up to help boost your tax refund next time.
Adjust your tax withholding
Tweaking your tax withholding is a smart way to avoid overpaying or underpaying your taxes throughout the year. Plus, let’s be real – life happens! Major events like getting married or welcoming a little one can really change your tax game. If you ended up owing money this year, adjusting your withholding can help you get back on track for next time.
So, if you’re ready to take control of your tax situation, here’s a simple guide on how to do it:
- Grab your latest paycheck, income information from other jobs (side gigs, self-employment, etc.), and your most recent tax return.
- Visit the IRS website and use their tax withholding estimator. It will help you figure out how much you should have withheld from each paycheck to get a bigger tax refund. On the other hand, if you got a large refund but would rather increase your take-home pay, they can show you how to reduce the amount of taxes being withheld every paycheck.
- If you want to change your withholding, simply print out the updated copy of your W-4 and submit it to your employer.
- Review your next paycheck to ensure the correct amount of taxes is withheld.
Track your deductions for a bigger tax refund
Keeping track of your deductible expenses can help you get a bigger tax refund next year. Research what tax deductions are available and save those receipts to ensure you don’t miss out on savings. We know how quickly things can become a cluttered mess, so use these simple tips to stay organized.
- Create a dedicated folder to store all your tax-related documents (receipts, statements, invoices, etc.).
- Use an app or spreadsheet to track your expenses as they occur. Some expenses you should be tracking are medical and dental bills, donations to charity, and business mileage.
- Categorize your expenses to make the tax season go smoother.
- Update your financial records regularly.
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More education = more cash!
Considering a return to the classroom? This is your sign to take the plunge. Going back to school can help you land a promotion, new job opportunities, and a chance to earn more money. Plus, continuing your education can boost your tax refund. Students who pay for tuition and other related expenses can qualify for the Lifetime Learning Credit worth up to $2,000 per tax return. You can claim the credit whether you’re an undergraduate, graduate or just taking a few non-degree courses to improve your job skills.
Save for retirement
If you haven’t started saving for retirement yet, now’s a good time to start. Low to middle income workers who save for retirement may be eligible for the Saver’s Credit. It’s worth up to $1,000 ($2,000 if married filing jointly) and it lowers your tax bill dollar-for-dollar. So, which retirement plan is right for you? Here are a few you should consider:
- 401(k), 403(b), and 457(b) plans – For 2025, you can contribute up to $23,500 to a workplace plan. Those aged 50 or older can contribute up to $301,000. Every dollar you contribute reduces your taxable income. Your money will grow tax-free until the funds are ready to be withdrawn.
- Traditional IRA – Your contributions to a traditional IRA may be tax-deductible. For 2025, the maximum contribution limit is $7,000. Those aged 50 or older can contribute an additional $1,000.
- SEP IRA – If you’re self-employed, own a small business, or earn freelance income, you can set aside up to 25% of your total compensation or $70,000 in a SEP IRA for 2025. Your contributions are tax deductible.
Increase your tax refund with an HSA
If you have a high-deduction health plan, consider opening a Health Savings Account (HSA). Not only will you be saving for future health costs, but the money you set aside can reduce your taxable income and boost your tax refund. Plus, the funds will grow tax-free and can be withdrawn tax-free if it’s used to cover qualifying medical expenses. The 2025 HSA contribution limit is $4,300 for self-only coverage and $8,550 for family coverage. At age 55, you can contribute an additional $1,000.
FAQs
How can I increase my tax refund this year?
Maximize deductions and credits, like the Earned Income Tax Credit, Child Tax Credit, and education expenses. ezTaxReturn helps ensure you don’t miss any opportunities.
What tax deductions can I claim to get a bigger refund?
Common deductions include retirement contributions, student loan interest, medical expenses, and business-related costs if you’re self-employed.
When is the best time to file taxes to get a refund faster?
Filing early can speed up your refund and reduce the risk of identity theft. Start as soon as you have your documents ready.
Can contributing to an IRA boost my tax refund?
Yes. Traditional IRA contributions may be deductible, which can reduce your taxable income. If you make them before the tax filing deadline, they could also help increase your refund.
What if I owe money instead of getting a refund?
You can adjust your tax withholding or estimated payments for next year to avoid a surprise bill next time.
How can ezTaxReturn help me maximize my refund?
ezTaxReturn guides you step-by-step, automatically checking for deductions and credits to ensure you get every dollar you’re eligible for.
Start your return with ezTaxReturn and see how much more you could get back!
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
