Find out more on how to increase the possibility of receiving a large tax refund.
Knowledge about tax benefits is also important to understand things better when expecting a large tax refund. (Photo: The Balance)
The Possibility Of A Large Tax Refund
During tax season, homeowners have the opportunity to receive large tax refund and benefits instead of spending more money on their houses. Increasing the chances of receiving a large tax refund is crucial, especially since owning a house in the US can be expensive, with rising home prices and hidden expenses.
However, there are tax credits and deductions available for homeowners that can lead to a larger tax refund. Homeowners need to learn about these potential tax benefits to maximize their chances of having a large tax refund.
Most homeowners are aware that they can deduct payments towards their loan interest, but some other deductions and credits may not be as obvious to successfully receive a large tax refund. Homeowners can reduce their taxable income through deductions and have more chances of receiving a large tax refund, either by taking the standard deduction or itemizing deductions such as charitable gifts and state taxes.
According to a published article by CNET, in line with receiving a large tax refund, tax credits, for homeowners, do not need to itemize and they directly reduce the amount of taxes owed.
One significant tax deduction is the mortgage interest deduction, which can be quite lucrative for new homeowners. It is important to file IRS Form 1098 to deduct mortgage interest and increase the possibility of a large refund.
Enhanced Child Tax Credit
In a published article by PBS, the House of Representatives has achieved a significant milestone by successfully passing a $79 billion tax cut plan. This plan has garnered support from both sides of the political spectrum and aims to enhance the child tax credit for low-income families while also offering additional tax benefits for businesses.
Although the future of this plan as a law is uncertain, its approval by the House is a noteworthy accomplishment. Speaker Mike Johnson has given his endorsement to the bill after addressing concerns raised by GOP legislators, particularly regarding the expanded child tax credit and the $10,000 limit on property tax deductions. Johnson has committed to addressing the issue of the cap, although no specific legislation has been formulated at this time.
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