Can you get a higher tax refund this year if you haven’t filed yet? Yes and No! The options now are very limited. Why? Simply because tax planning is NOT the same thing as tax preparation, and tax preparation is NOT tax planning.

 

Tax planning is learning and applying the tax rules to your lifestyle. After keeping all those receipts, you apply them to your tax filing the following year.

 

Thus, the absolute best way to maximize your 2020 tax refund next year is to start learning, and applying the rules from January 2020 now, and yes, six months have passed already.

 

Have children? Want to start, or own a small business? Do you give to charity? Own a home? Do you pay property taxes? Have you adjusted your W-4 yet at work? These are just a few areas that, if learned and executed properly, could expand your tax refund by hundreds or maybe even thousands of dollars.

 

President Donald J. Trump signed the Tax Cuts and Jobs Act (TCJA) into law on Dec. 22., 2017, bringing sweeping changes to the tax code. For example, the new law almost doubled the standard tax deduction. A single taxpayer’s standard deduction was significantly lower in 2017 at $6,350, compared with $12,200 after the tax change. Generally, taxpayers can choose whether they wish to apply a standard tax deduction or calculate their total taxes owed based on various itemized deductions.

 

However, these are not the only particulars of this tax law. Since the Trump tax laws have taken effect, many rules have changed, been readjusted, or in some cases eliminated. A review of the various tax codes will help you understand how they impact your lifestyle and your tax filing.

 

So how does one get a higher tax refund next year? By reviewing and taking into account the prevailing 2020 rules now in terms of understanding how these rules impact upon your lifestyle and your income – not next year when it’s tax preparation time.

 

So, with the July 15th deadline coming up for tax preparation filing for 2019, now would be the best time to call your tax representative and request a tax planning session.

 

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The Bronx News, thisisthebronX.info and The Bronx Chronicle. Mr.  Rivieccio also pens a financial article called “Money Talk”. Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University. You can reach Anthony at 347.575.5045.