if your income was the same or less than last year Freund explained that inflationary adjustments to tax rates, brackets, and deductions may result in more money back in 2025 if you earned the same or less.
Contributing More to Retirement Accounts If you made more contributions to tax-advantaged retirement accounts like a 401(k), which reduce your taxable income now, taxes on your gains, or later upon withdrawal, like a Roth IRA, your refund may be higher.
Take Self-Employment Deductions Freund explained that self-employed small-business owners and contractors can deduct “reasonable and necessary” business expenses and operations.
You May Get Tax Credits Freund called tax credits “government incentives to do something” that lower taxable income. He explained that “in this world where we’re trying to become more green, you have tax credits for installing efficient furnaces and air conditioning units, solar panels on your house, efficient washers and dryers
You Donated to Charity Cash or “in kind” charitable donations, such as clothing donated to Goodwill, can be deducted from your tax return if you itemize deductions and file a Schedule A.
Stock Losses Freund added, “You can sell the stock, take the loss and offset any gains or capital gains that may come out of some of your other investments,” if you have taxable investment accounts that are not retirement accounts with stocks, bonds, mutual funds, and similar investments that have lost value this year.