6. Maximize IRA contributions
Maximizing IRA contributions is probably the best way to increase your tax refund. Why? You’re getting a lot of benefits such as a great life in your golden years and minimizing the total taxable income. It is quite simple: the more you’re contributing to an Individual Retirement Account, the less you’ll pay taxes.
However, you should be sure to make the IRA contribution by the deadline, and it is also essential to understand your limits. For this year, you can deduct a maximum of $6,000 ($7,000 if you are 50 or older) in IRA contributions from your taxable income. It’s better to talk to a tax professional in order to ensure that your IRA contributions are made the right way.
