Tax prep process culminates: tax advisor offers advice for completing forms correctly
Maximising Your Tax Refund: A Guide to Flat Rates, Tax Apps, and Tax Declaration Extensions
Tax season is upon us, and with it comes the opportunity to maximise your tax refund. In this article, we will explore various strategies to help you get the most out of your tax return, including the use of flat rates, tax apps, and tax declaration extensions with a tax advisor.
Using Flat Rates
Many tax systems offer a flat rate deduction or standard deduction, simplifying filing and often maximising refunds without itemising expenses. A tax advisor can help determine if opting for standard flat rates or itemised deductions yields a higher refund for your situation. For instance, the home office flat rate, which allows individuals to claim 6 euros per day, can help you receive more money back.
Tax Apps Benefits
Tax preparation apps like TurboTax offer step-by-step guidance to help claim all eligible deductions and credits, maximising refunds. Some apps also support direct deposit split into multiple accounts for faster, safer refunds. Using apps can speed up electronic filing, often resulting in the tax refund arriving in less than 21 days when combined with direct deposit[1].
Direct Deposit Tips from Apps
The fastest way to receive refunds is via direct deposit, which can be distributed into up to three accounts or prepaid debit cards, giving flexibility for managing refunds. Tax advisors or apps can help ensure correct account info to avoid delays or paper checks[1].
Tax Declaration Extensions
Filing extensions with a tax advisor gives more time to gather documents and potentially optimise returns. While extensions delay filing deadlines, the IRS generally requires payment of estimated taxes by the original deadline to avoid interest and penalties. The availability of an extension for the tax declaration deadline does not affect the possibility of claiming other flat rates.
Consulting a Tax Advisor
Advisors provide personalised strategies like timing income/expenses, choosing the best deductions, applying tax credits, and using recent laws (e.g., expanded R&D expense deductions under recent legislation) to reduce tax burdens and increase refunds[3]. Submission of the extended tax declaration must be done by a tax advisor.
Smart Use of Refunds
After securing a refund, using it strategically—for example, paying off debt, emergency savings, or investments—can improve financial health long term[2].
In summary, combining flat rate allowances, leveraging modern tax apps for quick, secure refunds (including split direct deposits), and working with a tax advisor for extensions and tax planning can optimise your money back efficiently and safely. Remember, claiming flat rates does not require having a home office, and extraordinary expenses can still be deducted even when using a tax advisor.
[1] TurboTax. (n.d.). How long does it take to get my refund with direct deposit? Retrieved from https://turbotax.intuit.com/tax-tips/tax-refund/how-long-does-it-take-to-get-my-refund-with-direct-deposit/L12351
[2] FINRA. (n.d.). How to Use Your Tax Refund Wisely. Retrieved from https://www.finra.org/investors/financial-education/information-library/investor-alerts-bulletins/how-use-your-tax-refund-wisely
[3] IRS. (n.d.). Tax Reform Basics for Individuals and Families. Retrieved from https://www.irs.gov/individuals/tax-reform-basics-for-individuals-and-families
Utilizing the home office flat rate or standard deductions offered by many tax systems can help maximize your tax refund, as advised by a tax advisor. To manage your refunds more effectively, consider using tax apps like TurboTax that guide you through the tax filing process and allow for direct deposit split into multiple accounts. For personalized strategies on deductions, tax credits, and optimizing returns, consulting a tax advisor is essential.
