While filing taxes can be stressful, learning that you will be receiving a refund is a welcome relief. If you have overpaid taxes throughout the year, either because too much was withheld from your paycheck or because you qualify for tax credits and deductions that lower your tax liability, the government will return the excess money to you. Your money is returning to its rightful place.

Tax Refund: What Is It Exactly?

To put it another way, consider a tax refund as your own hard-earned money returning to you after Uncle Sam hoarded a little too much. It may occur for a variety of reasons, such as your employer deducting more taxes from your pay than is necessary or because of allowable credits and deductions. In essence, having that extra cash return to your life at the right time is relieving.

What Determines How Much of a Refund You Get?

The amount of your refund depends on a number of factors:

1. Your Earnings: The amount of tax deducted from your pay is based on your annual income. Unless you have prepared yourself for credits and deductions, your debt may increase as you earn more money.

2. Tax Outcome: A significant influence on your tax outcome is the filing status you choose, such as single, married, or head of household.

3. Tax Credits: By lowering your overall tax liability, tax credits such as the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) can significantly increase your refund. These serve as your financial arsenal's "secret weapons."

4. Deductions: You may increase your refund by lowering your taxable income by taking advantage of itemized deductions for things like charitable contributions, mortgage interest, and medical costs.
   
   
   

Ways to Increase Your Refund

To be honest, everyone wants to get their money back as much as possible. Here is how to carry that out:

1. Get All of the Tax Credits You Are Entitled to: Not only do credits like the EITC or CTC lower your taxes, but they also put money back in your pocket.

2. Recall Deductions: If you have incurred large expenses for items like medical bills or charitable contributions, it might be beneficial to itemize instead of taking the standard deduction.

3. Modify Your Withholding: Have you ever wondered why some people receive large refunds while others are in debt? Frequently, the topic is the amount of money deducted from their paychecks. You are effectively lending money to the government at zero interest if too much is taken out. Make sure you are keeping more of your paycheck throughout the year by making adjustments to your W-4.
   
   
   

How CWF Can Simplify Tax Season

With the Campaign for Working Families (CWF) on your side, tax season need not be a stressful time. We provide free tax preparation services to help Philadelphia residents get every penny they are due because we understand how confusing taxes can be. To ensure you do not miss anything, our skilled volunteers work with you to determine all the credits and deductions you qualify for. Furthermore, we are available to assist you with financial planning all year long so you can stay ahead of the game, not just during tax season.


Knowing how the system operates and figuring it out to your advantage will help you maximize your tax refund rather than relying solely on chance. Additionally, you can get guidance from the Campaign for Working Families whenever you need it. Make an appointment by giving us a call at 215-454-6483 or visiting cwfphilly.org to ensure that you are getting the most out of your tax return this year.

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