3 Important Ways Millennials Can Enhance Their Tax Refunds
Millennials have gotten a bad name for not being knowledgeable about money, however when it comes to filing and paying their taxes they do they not receive the recognition they deserve. More than 400 millennials said they expected to receive a tax refund, and 54% of those who expect to get one said they believe they should save or invest it. According to marketwatch.com, 90% of millennials said they file their taxes a full month or more ahead of the April 15 tax deadline, compared with 77% of other age groups, according to a survey carried out by s market-research firm. This is pretty intriguing statistic. With less than two weeks to until the filing taxes, millennials should take a look at these three important ways to enhance tax refunds!
Breaks for Retirement Savings
If your cash flow is high, I recommend you start moving some of that hard earned money into a retirement account (IRA) so you can put the money to work while also lowering your tax bill. If you are thinking about opening an account, I suggest you do it soon because you have until the tax-filing deadline to do so, which is on April 18.
Write off student loan interest
Student loan payments can be rather hefty for millennials and they take a good amount of time to pay off in full. However, the debt can lead to a tax break as millennials can deduct up to $2,500 in student-loan interest, which is awesome news. For those looking to qualify for this, taxpayers must have modified income below 80,000 if they are single, or below $160,000 if they are married.
Job-related credits
If you started a new job and it caused you to move to a different location you will be able to deduct those moving expenses, including cost of movers and travel. Now, how awesome is that? You will be able to this if you have a simple return and are taking the standard deduction. Another important thing to note is make sure you do not miss the deadline! Filing for taxes can be rather overwhelming and there may be people who decide to wait and file after Tax Day. The are people who receive the funds may be fine and have time to claim those refunds, but if they are wrong and end up owing taxes, the penalties can add up. The best decision is to file for an extension, so you have more time to prepare for the paperwork.
