Tax Refund Guide: What You Need to Know Before You File

Tax Refund 2025: How to Get the Maximum Return This Year

Getting a bigger tax refund begins with knowing about deductions and credits. These two terms are key to lowering your taxes. Deductions reduce your taxable income, while credits directly cut the tax you owe. By understanding these, you can make smart choices to save more on taxes.

Deductions and credits help you get the most out of your taxes. They make your tax bill smaller. Knowing the difference between them helps you use the tax system better. This way, you can make sure you’re getting all the tax savings you can.

Introduction to Tax Refunds and Their Importance

Tax refunds are the money the government gives back to taxpayers after they file their taxes. This happens when people pay too much in taxes or get big deductions and credits. A survey in April 2023 showed that 60% of Americans think their federal income tax is too high.

This shows many people want to find ways to get more money back. Knowing about tax refunds is key for those looking to lower their taxes. They can use different strategies to pay less in taxes and get more back.

What Are Deductions and Credits on Taxes?

It’s important to know the difference between tax deductions and credits. They both help reduce what you owe in taxes, but in different ways.