By "decent" I mean at least $2000.
2007-01-05 10:49:55 · 8 answers · asked by videogamer1979 2 in Business & Finance ➔ Taxes ➔ United States
That isn't very much money. Did you pay that much in taxes?
Write of your property and any business expenses.
2007-01-05 10:53:29 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Assuming you are paid every 2 weeks, $2000 = $77/check. You will get a $2000 refund if and only if your withholding is $77 per check more than your tax liability. You are better off getting the $77 in each check than loaning it to the government interest free.
That said, you really want to know how to reduce your tax liability. That is the amount the IRS actually keeps. Contributing the maximum to your 401(k) or an IRA is a good start. If you do not own a home, buy one. You should be able to find something for not much more than rent and your property tax and mortgage interest are deductible. You are already paying these for your landlord anyway.
2007-01-05 11:46:31 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
either have more withheld from your check each month or contribute significantly to an IRA or 401k. The latter would require about a 10,000 contribution though.
Think about what a tax refund really is...it's a return of money that you already paid to them. Only way to increase that is to pay them MORE (which simply lowers your monthly take home pay) or to lower your tax. Only way to lower your tax is to have a financial outlay (either have a kid, buy a house, contribute to retirement, pay alimony, or get married). I'd say avoid every one of those scenarios if you're just looking for a refund as they are more expensive than your 2k refund hope! Which means you're back to withholding more and having the IRS act as your personal savings account.
2007-01-05 11:12:08 · answer #3 · answered by digdowndeepnseattle 6 · 1⤊ 0⤋
Take out a Traditional IRA...it lowers your "adjusted gross income", so whatever was withheld should be more than enough to cover your "tax" ( and it can't hurt to put money away for the future)
The only other option is to increase your " withholding"... are you claiming " 0 "? Even if you are, you can have your employer withhold a little more ...you might not miss 10 or 15 bucks a week and you will most likely get it back ( in a bundle) next time you do your taxes.
2007-01-05 11:04:56 · answer #4 · answered by jebediabartlett 6 · 0⤊ 0⤋
Vote democrat and maybe they'll bring back the marriage penalty...just kidding. The more you pay the more you get back you'll want some deductions so incorporate yourself.
I drive 60 miles back and forth to work everyday so if i'm self incorporated i can write that off as a business expense. Since i DJ on the side i can lease my notebook and write that off as well (i lease my computer and some other items because it helps cash flow and doesn't show as debt). The food i buy and music i buy is a tax write off as well. I am my business.
2007-01-05 11:11:30 · answer #5 · answered by sprydle 5 · 0⤊ 2⤋
only way is to have a house. as for the driving deductions going to there and then back home is NOT deductable. To get that deduction you have to have a third stop. (This includes charity work). if you can prove you have a vehicle used exclusively for yoru business then you can take a deduction from that.
2007-01-05 11:20:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It all depends upon how much was already automatically deducted from your paychecks throughout the year.
2007-01-05 10:57:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Buy a house
2007-01-05 10:53:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋