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How to Get a $10,000 Tax Refund in 2024 (Yes, It’s Possible!)

6 Simple Steps to Lower Your Taxable Income and Increase Your Refund

Do you want to know how to get a huge tax refund in 2024?

A refund that could pay off your debt, fund your vacation, or boost your savings?

You might think it’s impossible, but it’s not. In fact, some people have done it before. And you can do it too, if you follow these simple steps.

But before we get into the details, let me ask you a question:

Are you taking advantage of all the tax credits and deductions you’re eligible for?

If you’re not, you’re leaving money on the table. Money that could be yours, if you only knew how to claim it.

That’s why I’m going to show you how to use some of the most powerful tax-saving strategies available.

Strategies that could help you lower your taxable income, increase your refund, and save thousands of dollars on your taxes.

Sounds good, right?

Then let’s get started!

Step 1: Claim the Earned Income Tax Credit (EITC) and the California Earned Income Tax Credit (CalEITC)

The EITC and the CalEITC are two of the most generous tax credits for low-to-moderate income workers.

They can reduce your tax liability and increase your refund, depending on your income, filing status, and number of dependents.

For example, in 2024, a single person with no children who earns less than $16,010 can get up to $543 from the EITC and up to $243 from the CalEITC. That’s a total of $786 in tax credits!

But that’s not all.

If you have children, you can get even more. For instance, a married couple with three children who earns less than $56,844 can get up to $6,728 from the EITC and up to $3,027 from the CalEITC. That’s a whopping $9,755 in tax credits!

To claim these credits, you need to file a tax return, even if you don’t owe any taxes.

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You also need to meet certain requirements, such as having a valid Social Security number, being a U.S. citizen or resident alien, and having earned income from work.

You can use the EITC Assistant and the CalEITC4Me Calculator to see if you qualify and how much you can get.

Step 2: Itemize Your Deductions

Another way to lower your taxable income and boost your refund is to itemize your deductions.

This means that you list all the expenses that you can deduct from your income, such as mortgage interest, property taxes, medical expenses, charitable donations, and more.

Itemizing your deductions can be more beneficial than taking the standard deduction, which is a fixed amount that you can subtract from your income without listing any expenses.

For 2024, the standard deduction is $12,550 for single filers, $18,800 for heads of household, and $25,100 for married couples filing jointly.

However, itemizing your deductions is only worth it if your total deductions exceed your standard deduction. Otherwise, you’re better off taking the standard deduction and saving yourself some hassle.

To itemize your deductions, you need to keep track of all your receipts and records throughout the year. You also need to fill out Schedule A and attach it to your Form 1040. You can use the IRS Interactive Tax Assistant to see if you should itemize or not.

Step 3: Contribute to a Traditional IRA

A traditional IRA is a retirement account that lets you save money and defer taxes until you withdraw it.

This means that you can deduct your contributions from your income, up to a certain limit, and lower your tax bill.

For 2024, the limit is $6,000 for most people, or $7,000 if you’re 50 or older. However, your deduction may be reduced or eliminated if you or your spouse are covered by a retirement plan at work and your income exceeds certain thresholds.

To claim the deduction, you need to make your contributions by the tax filing deadline, which is April 15, 2024. You also need to report your contributions on Form 1040 or 1040-SR, and use Form 8606 if you have any nondeductible contributions.

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You can use the IRA Contribution Calculator to see how much you can contribute and how much you can save on your taxes.

Step 4: Max Out Your Contributions to a Health Savings Account (HSA)

An HSA is a special account that lets you save money for medical expenses and enjoy tax benefits.

You can contribute to an HSA if you have a high-deductible health plan (HDHP), which is a health insurance plan that has a higher deductible and lower premiums than a typical plan.

The benefits of an HSA are:

  • You can deduct your contributions from your income, up to a certain limit, and lower your tax bill.
  • You can withdraw your money tax-free, as long as you use it for qualified medical expenses, such as doctor visits, prescriptions, dental care, and more.
  • You can invest your money and let it grow tax-free, until you need it.

For 2024, the limit is $3,600 for individuals and $7,200 for families. If you’re 55 or older, you can contribute an extra $1,000. However, your contribution may be prorated if you’re not eligible for the HSA for the entire year.

To claim the deduction, you need to make your contributions by the tax filing deadline, which is April 15, 2024. You also need to report your contributions on Form 8889 and attach it to your Form 1040 or 1040-SR.

You can use the HSA Contribution Calculator to see how much you can contribute and how much you can save on your taxes.

Step 5: Claim the Credit for Energy-Efficient Home Improvements

If you made any home improvements that increased your home’s energy efficiency in 2024, you may be eligible for a tax credit.

This credit is worth 10% of the cost of qualified improvements, up to a maximum of $500.

Qualified improvements include:

  • Insulation materials and systems
  • Exterior doors and windows
  • Skylights
  • Metal and asphalt roofs
  • Biomass stoves
  • Central air conditioners
  • Heat pumps
  • Water heaters
  • Furnaces and boilers
  • Advanced main air circulating fans

To claim the credit, you need to have the receipts and manufacturer’s certification statements for the improvements. You also need to fill out Form 5695 and attach it to your Form 1040 or 1040-SR.

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You can use the Energy Star Rebate Finder to see what rebates and incentives are available in your area for energy-efficient home improvements.

Step 6: Consult with a New Accountant

The last step to get a $10,000 tax refund in 2024 is to consult with a new accountant.

A new accountant can review your tax situation and find additional ways to save money on your taxes. They can also help you avoid mistakes, penalties, and audits.

A new accountant can charge you a fee for their services, but it may be worth it if they can save you more money than they cost you. Plus, you can deduct their fee as a miscellaneous itemized deduction, subject to the 2% of adjusted gross income limit.

To find a new accountant, you can ask for referrals from your friends, family, or colleagues. You can also use online directories, such as the IRS Directory of Federal Tax Return Preparers or the AICPA Find-A-CPA service.

You can use the Tax Preparation Fees Calculator to estimate how much a new accountant will charge you.

Conclusion

Getting a $10,000 tax refund in 2024 is not impossible, but it requires some planning and action.

By following the steps above, you can take advantage of the tax credits and deductions that are available to you, and maximize your refund.

However, remember that these are only general guidelines, and your tax situation may vary depending on your income, expenses, and other factors.

Therefore, it’s always advisable to consult with a qualified tax professional before filing your tax return.

I hope you enjoyed this article and found it useful.

If you did, please share it with your friends and family who might benefit from it. And if you have any questions or comments, please leave them below.

Thank you for reading, and happy tax season!

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