Fixing Your 2021 Taxes - A Step by Step Guide

Step-By-Step Guide to Maximizing 2021 Tax Refund: 1. Gather the necessary documents. Start by making sure you have all the documents you need to file your taxes, including information about your income, deductions, credits, and other tax-related items like charitable contributions. 2. Determine if you are eligible to receive the Earned Income Tax Credit (EITC). This credit is available to those with low-to-moderate income and is worth up to $6,660. To determine eligibility, use the EITC Income Limit table at the IRS website. 3. Determine if you are eligible for any other tax credits. There are several tax credits available, including the Child Tax Credit, Additional Child Tax Credit, Adoption Credit, and American Opportunity Tax Credit. 4. Claim all of your deductions. Make sure you’re taking full advantage of all the deductions you can claim. These include deductions for medical expenses, charitable donations, state and local taxes, and more. 5. Maximize your contributions to a retirement account. Contributions to a traditional IRA, Roth IRA, and other retirement accounts are all deductible. The more you contribute, the higher your refund will be. 6. Double-check your calculations. Make sure that all numbers are correct and that you’re filing the correct forms for your specific situation. 7. File your taxes electronically. The IRS recommends filing taxes electronically in order to get the fastest refund. If you’re eligible, you may also be able to use the IRS Free File program to file your taxes online for free. 8. Double-check your refund amount. When you receive your refund, make sure that the amount is correct before cashing any check. It’s also a good idea to keep a copy of your tax return for your records.