Experts share top tips to maximize their return

Only one month remains in the 2025 tax registration season before the deadline on April 15.

The Internal Revenue Service (IRS) received fewer returns by March 7 than in the same period in 2024, but according to IRS data, the average reimbursement is 5.7% higher.

Despite larger checks, the tax season can be particularly stressful. A survey by Inuit Credit Karma and Qualtrics showed that almost a third of the employees want to cry only to think about the submission of their taxes.

To alleviate some of these worries (and tears), Yahoo Finance asked professional consultants about their top tips and memories for the 2025 tax season.

By March 1, the IRS processed 98.8% of the submissions they received and reimbursed $ 124.8 billion to taxpayers.

“We see in our practice that more customers will actually receive refund this year,” Gordon, Andrew Gordon, told Yahoo Finance.

Some Americans may expect larger checks this year due to the recent changes in life, said Gordon.

“One of the most important credits or deductions is the tax credit for children,” said Gordon. “And if you had a child during the year, you will receive an additional $ 2,000 for your taxes, and up to $ 1,700 of it is reimbursable or will be repaid directly to you.”

The Tax Code itself can be another reason for larger reimbursements.

“We saw that the standard deduction that many people take, instead of increasing to $ 14,600 this year,” said Gordon. “And at the same time the tax classes themselves rose in every bracket with inflation. If your income remained exactly the same, you will still receive a larger refund because there are larger tax classes.”

Read more: Where is my refund? How to check the status of your federal tax reimbursement status.

Nevertheless, there are reasons why you may not want to have a fat check from the IRS.

“If you receive a large refund, it's not necessarily a good thing,” said Gordon. “I hear” Hey all the time, I have received a big refund “, but the reality is that they gave the government an interest -free loan.”

TurboTax expert Lisa Greene-Lewis explained that you can adjust your withholding tax if you are not satisfied with your tax return. It may mean a lower refund next year, but more money in your pocket every month.

According to a bank rate of 2024, 36% of the US -growing people earn an additional income from an additional employment. And with the growth of the unmaid income on peer-to-peer payment platforms such as Venmo and PayPal (Pypl), the IRS is looking for its cut.

“Many people, especially during covid, have created side books, made these businesses”, CEO from KDA Karla Dennis said to Yahoo Finance. “And [the IRS knows] That there are many not reported income. Therefore, IRS wants to cancel each other, all income, and [make] Sure, you charge the appropriate tax amount. “

Read more: Free tax registration: Submit your 2024 return broadcast for free

Shannon Philbrick from Liberty Tax Services, which is disguised as a Liberty statue, waves a shield on February 4, 2009 with the drivers in Westminster, Colorado. (Reuters/Rick Wilking) · Reuters / Reuters

This means that Filer, which deserves over $ 5,000 from payments on online platforms in 2024, will receive a 1099 K course and taxed them on this income. The IRS report threshold drops to $ 2,500 for the 2025 calendar year and $ 600 in 2026.

The new digital payment rules are remarkable for prospective creators and freelancers. However, there are some important options for how freelancers can continue to maximize their tax returns.

“One of the things that [independent workers] Should recognize all the personal expenses that you use for the transition from business, and [they should] Take it as a business deduction, “said Dennis.” Things like your car, your cell phone – things you pay out of your pocket – your meals, your journey. “

“In addition, [freelancers] I want to have a separate bank account for your business, “added Dennis.” [the] IRS can classify these expenses as personally and you can lose these deductions. “

There are some main causes of retirement taxes, but one of the largest is required that are required for minimum releases (RMDs).

“[It’s] A little confusing, but the thing with RMDS is that you are taxable income. “

Powell found that there are some steps that you can take to avoid the adverse tax effects of RMDs.

“You can think about carrying out full or partly red conversions so that they reduce the RMDs when it is time that they take these distributions,” he said. “The other is to draw before you reach the RMD age, and that could reduce the RMDs if you reach the RMD age.”

“And the last thing you can do is, if you are 70 1/2 and older, you can call something qualified non -profit distribution or QCDs that are not taxable,” added Powell. “And these are a way to at least avoid the adverse effects of RMDs.”

There are also less well -known credits to which some pensioners have access.

“Retirement-saving credit is a little known loan,” said Greene-Lewis to Yahoo Finance. “You will only retire for investing. And that is up to 1,000 US dollars if you are single and 2,000 US dollars that are submitted together.”

Pensioners can also maximize tax advantages through their health premiums.

According to Powell, most pensioners, who are enrolled in Medicare, pay a monthly fee of around $ 185 US dollars. “But if you have so -called modified adjusted gross revenue that is above a certain threshold, you can pay between 259 $ 259 to 628 US dollars, depending on the modified adjusted gross income or” Magi “…

Powell advised the pensioners who fit into this category to aware of their changed adjusted gross revenue and their taxable income rate in Roth Conversions, the conclusion of IRAS, the recording of a bonus or severance payment package or the sale of assets.

“If you push yourself into a higher magician, you will pay the contract,” he said.

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Experts share top tips to maximize their return

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