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Keep Records to Maximize Tax Refund

  //business-finance.news-articles.net/content/2026/01/07/keep-records-to-maximize-tax-refund.html
  Published in Business and Finance on Wednesday, January 7th 2026 at 21:02 GMT by Killeen Daily Herald

The Importance of Record Keeping and Claiming Deductions

Johnson emphasized that one of the most pervasive errors taxpayers make is inadequate record-keeping. "It's remarkably easy to misplace receipts, forget about eligible deductions, or simply not have the documentation needed to support your claims," he explained. "Throughout the year, maintaining a dedicated system - whether it's a physical filing system or a digital one - can save a significant amount of stress and potentially increase your refund."

Beyond simply having records, Johnson stressed the importance of understanding what deductions and credits you qualify for. Tax legislation is notoriously complex, and many individuals inadvertently leave money on the table. Common areas where taxpayers miss out include deductions for home office expenses, charitable contributions, medical expenses (subject to certain thresholds), and educational credits. Resources like the IRS website ([ https://www.irs.gov/ ]) offer detailed information, but consulting a tax professional can help ensure you're maximizing your benefits.

Significant Changes Looming for the 2025 Tax Year

Taxpayers should be particularly aware of upcoming changes stemming from the expiring provisions of the Tax Cuts and Jobs Act (TCJA). Many features of the TCJA, implemented in 2018, are slated to revert to prior levels after the 2025 tax year (filed in early 2026). This impacts several key areas.

"The standard deduction, which many taxpayers utilize, is likely to decrease," Johnson stated. "Similarly, the child tax credit, a significant benefit for families, may also be reduced. These changes could result in a higher tax liability for some individuals, so proactive planning is essential."

Taxpayers should be prepared to recalculate their withholdings or estimated tax payments to account for these potential shifts. Delaying this adjustment could lead to underpayment penalties.

Addressing Years of Unfiled Taxes

For those who have fallen behind on filing, Johnson offered a message of encouragement coupled with a call to action. "It's understandable to feel overwhelmed if you haven't filed for several years, but ignoring the problem will only make it worse," he advised. "The IRS has programs in place to assist taxpayers in becoming compliant. They would rather work with you to resolve the issue than pursue more aggressive enforcement actions."

While penalties for late filing and non-payment accrue, the IRS offers options like installment agreements and, in some cases, penalty abatement. However, the longer you delay, the more complicated the process becomes. Gathering the necessary documentation for multiple years can be time-consuming and challenging.

Choosing the Right Tax Professional

When seeking professional assistance, Johnson emphasized the importance of selecting a qualified and reputable preparer. "Not all tax preparers are created equal," he cautioned. "Look for credentials like Certified Public Accountant (CPA) or Enrolled Agent (EA). These designations demonstrate a certain level of expertise and commitment to ongoing education."

Beyond credentials, it's crucial to check references and ensure the preparer has a clean disciplinary record. A trustworthy preparer will prioritize accuracy, transparency, and ethical practices.

Reframing Your Perspective on Taxes

Finally, Johnson urged taxpayers to shift their perspective on taxes. "It's easy to view taxes solely as an obligation - money you owe to the government," he said. "However, taxes are also a mechanism for receiving benefits. Through refunds, credits, and deductions, you may be entitled to money back."

By proactively understanding your tax situation, keeping accurate records, and seeking professional guidance when needed, you can navigate tax season with confidence and potentially maximize your financial well-being.