It is that time of year again. Tax season is officially upon us, and while some people like to wait until the last minute, others are going to be proactive so that they can get their refund check back. While federal taxes are the same across the board, those in the state of Michigan should try to get as much money back as possible. How can that be done? It helps to look for deductions, credits, and more. Here are a few tips for filing your taxes in Michigan to do just that.
It might sound extremely cliché, but the biggest tip when it comes to dealing with taxes is to simply be prepared and organized. That means putting in the time and effort to keep documentation. Staying up on things allows for smarter decisions to be made instead of everything being rushed.
Most people who are really planning ahead will start to look at saving for taxes during the winter months of the previous year. That allows them to not be surprised if a big bill is due to the IRS and the state of Michigan once the new tax year hits; no one wants to have to deal with something like that.
Tally-Up Charitable Donations
Many are well-aware of the fact that a big charitable donation comes with a deduction. However, few really take the time to add up the small contributions throughout the year. Anything from school fundraisers to soup kitchen donations count. If the total amount reaches a certain point, that’s money back in your pocket.
Consider All Student Loan Interest
Dealing with student loans can be a huge burden for just about anyone. While the relief might not be that much, it is important to report all student loan interest. This includes interest paid for by parents as well as individuals.
Check for a Home Heating Credit
This tip is exclusive for residents in Michigan, as very few states offer anything like this. For low income residents, they may be eligible for a home heating credit. This credit can range from about $500 to $1270, depending on a bunch of factors. With the way winter is in the state of Michigan, this credit can certainly provide a little bit of relief for families and individuals.
Along with this credit, low-income residents should be looking for as many credits and deductions as possible. The state of Michigan has been through some tough times in recent years, and they have some quality options for savings for those who really need it most.
Put in the Work Despite the Flat Tax Rate
Michigan is one of eight states in the United States with a flat tax rate. That means that the same percentage is paid for everyone. Since that is the case, many look at it is though they can’t really change that percentage.
Use the tips above, and more, to get as much money back as possible. It really does not take that long to take a long look at what can be claimed and what can’t. If it is too complicated, hiring a tax attorney in Michigan could be a great way to take care of things. They are looking for deductions and credits all the time, so they can definitely provide assistance.