NEW YORK (PRWEB) January 14, 2020
Just in time for the 2020 tax season, Picnic Tax, an online platform that matches consumers with qualified accountants from its national network based on consumers’ unique tax preparation needs, has released a list of its top tips for maximizing 2020 refunds:
1. Choosing the correct filing status – One of the best ways to maximize tax refunds is to consider your filing status. Around 96% of married couples file joint returns, but some may want to consider opting for Married Filing Separately status. By choosing to file separately, each partner may have a lower adjusted gross income, used to determine eligibility for some credits. Taxpayers should take their own eligibility into account when deciding which option is best.
2. Track deductible expenses – If you have a number of deductible expenses, you can elect to itemize deductions and potentially get a bigger overall deduction than the standard deduction that most people choose. There are several expenses that are eligible, including mortgage interest, state taxes, miles driven for medical care or charity, and dollars spent on charity work or donations.
3. Take advantage of relevant tax credits – These tax credits are often even more useful than deductible expenses because they directly reduce your tax bill by the amount specified. Common credits include the Child Tax Credit, Earned Income Tax Credit, the American Opportunity Tax Credit, Child and Dependent care credits and Adoption tax credits.
4. Maximizing HSA and IRA contributions – Consider optimizing your tax refunds with healthcare and retirement contributions. An IRA can be opened for the previous tax year until April 15 of the following year. By contributing to an IRA, you directly reduce your taxable income and save for your retirement at the same time. Health Savings Account (HSA) contributions can also reduce your income eligible for taxation as well as help with planning future medical costs.
5. Free filing for lower income brackets – It’s important for lower-income Americans to know their rights when it comes to filing their taxes. If you make less than $34,000 a year, you should be able to file your taxes for free on services like TurboTax. Many lower-income taxpayers don’t know about the free filing option because the large, legacy tax filing companies have not publicized this option; and, according to recent reports, they’ve even suppressed the free versions from appearing in search engine results. Due to the IRS’ recent addendum to the Free File program, online tax filing companies are now prohibited from hiding their free filing options from lower-income Americans. If you fall into this tax bracket, make sure you don’t end up paying for tax prep help that you are legally entitled to for free.
“The multitude of conflicting information available on the web can be incredibly overwhelming for taxpayers, especially as they consider more complex scenarios involving assets like rental properties and freelance income,” said Picnic Tax founder Ryan McInnis, who launched the innovative platform in 2019. “One of Picnic Tax’s primary core values is transparency, and that begins with ensuring that the public is well-equipped with the information necessary to make an informed decision that is best for them, whether that decision involves filing through Picnic Tax or not.”
In addition to offering taxpayers the best of both worlds—online convenience, affordability and efficiency paired with the offline expertise of professional, certified accountants—Picnic Tax outshines existing online tax prep offerings on the transparency front. Picnic Tax will never impose hidden fees associated with tax preparation or filing, and clients receive a fixed price quote before starting the tax filing process.
For more information, visit https://www.picnictax.com/.
About Picnic Tax
Picnic Tax provides a modern and innovative online tax prep solution. Picnic Tax merges the best aspects of traditional DIY tax software with the personal touch of working with an accountant. By hiring a certified professional through Picnic Tax, clients are safeguarded from overpaying taxes—an incredibly common occurrence for people who try to do their taxes themselves using other legacy platforms.
Picnic’s accountants are extensively vetted to ensure the highest quality work while Picnic’s clean and intuitive interface enables customers to get through the entire tax filing process in less than 15 minutes—about 90% less time than the 3 hours that the average tax filer spends filling out tax forms and questionnaires. Picnic Tax’s pricing starts at $200, which is significantly more affordable than the going rate for CPAs in most major cities.
For more information visit: https://www.picnictax.com/