Get the Most Out of Your Personal Tax Returns

Tax season doesn’t have to be stressful—or rushed. With the right preparation and strategy, your personal tax return can become a powerful financial tool that helps you keep more of your money, reduce liabilities, and plan confidently for the future.

Here’s how to make the most of it.

Start With Organized Records

Strong tax returns begin with organized documentation. Throughout the year, keep track of:

• Income statements (W-2s, 1099s)

• Business or freelance income and expenses

• Mortgage interest statements

• Student loan interest

• Charitable donations

• Medical expenses

• Investment activity

Staying organized not only reduces stress but also minimizes the risk of missing valuable deductions.

Choose the Right Filing Status

Your filing status affects your tax bracket, standard deduction, and eligibility for certain credits. Whether you are single, married, or head of household, selecting the correct status can significantly impact your outcome.

Life changes such as marriage, divorce, or having a child can also open up new opportunities for tax savings.

Maximize Deductions

Deductions reduce your taxable income, which lowers the amount of tax you owe.

You can either take the standard deduction or itemize your deductions, depending on which provides the greater benefit. Common itemized deductions include:

• Mortgage interest

• State and local taxes (within limits)

• Charitable contributions

• Medical expenses above certain thresholds

A careful review ensures you don’t leave money on the table.

Don’t Overlook Tax Credits

Tax credits are even more valuable than deductions because they reduce your tax bill dollar-for-dollar.

Examples include:

• Child Tax Credit

• Earned Income Tax Credit

• Education credits such as the American Opportunity Credit

Properly applying credits can significantly increase your refund or reduce your balance due.

Use Tax-Advantaged Accounts Strategically

Contributing to retirement and health savings accounts can lower your taxable income while helping you build long-term wealth. Options may include:

• 401(k) plans

• Traditional IRAs

• Health Savings Accounts (HSAs)

• Flexible Spending Accounts (FSAs)

Strategic contributions today can mean meaningful savings tomorrow.

Plan Ahead for Next Year

Your tax return isn’t just a yearly task—it’s a financial planning opportunity. After filing, consider:

• Adjusting your withholding

• Increasing retirement contributions

• Tracking deductions more consistently

• Planning quarterly payments if self-employed

Proactive planning can eliminate surprises and improve cash flow.

Work With Professionals Who Understand Your Goals

Tax laws change regularly, and every financial situation is unique. Working with experienced professionals can help you identify savings opportunities, ensure compliance, and build a long-term strategy.

For official updates and tax guidance, you can also refer to the Internal Revenue Service for forms and current regulations.

Ready to Maximize Your Return?

Don’t navigate tax season alone. Whether your return is simple or complex, having the right guidance can make a significant difference in your outcome.

Contact AKW Financial today to prepare your personal tax return and make sure you’re getting the most out of every dollar.