Tax season is here again, and let’s be honest—no one is excited. The IRS is circling like a hawk, ready to pick apart our returns. And they’re expecting a big payday. Last year alone, the IRS issued over $57 billion in Earned Income Tax Credits (EITC) to about 23 million workers and families, with the average amount per taxpayer reaching $2,541
But this year, we’re playing smarter, keeping more of what we earn, and making sure every deduction, credit, and loophole works in our favor.
The IRS Wants It All—But We’re Not Handing It Over
The tax code is a tangled mess of rules that seem designed to confuse the average person. And guess who benefits from that confusion? Not us. But here’s the thing: the IRS doesn’t get to decide how much we hand over without us putting up a fight (a legal one, of course).
So, instead of blindly accepting that massive bill, we’re sharpening our pencils, doing the research, and making sure we’re not paying a cent more than necessary. It’s time to stop treating tax season like a yearly defeat and start treating it like a strategic game.
Maximizing Deductions: Because Every Dollar Counts
Think deductions are just for big businesses? Think again. The tax code offers plenty of deductions for individuals, but most people miss out. In fact, only 11.4% of taxpayers itemized deductions in 2018, while 87.3% simply took the standard deduction. That means millions could be overpaying their taxes by not claiming deductions they’re eligible for.
If you work from home, your office setup might be deductible. The space you use for work, your internet costs, and even a portion of your utilities could lower your taxable income. Running a side hustle? That’s a goldmine of deductions. Business expenses like your laptop, supplies, and software can all be written off.
Medical expenses can also work in your favor. If they exceed 7.5% of your income, you might be able to deduct them. That includes prescriptions, therapy, and even glasses. And let’s not forget education. If you’re paying for classes, professional certifications, or dealing with student loan interest, the IRS offers credits and deductions for that too.
Bottom line? If you spent money on something essential, there’s a good chance you can deduct it. But only if you actually claim it.
Tax Credits: The Hidden Goldmine
Unlike deductions, which lower your taxable income, tax credits slash the amount you owe directly. Some of them are even refundable, meaning you could get a check from the IRS instead of writing one.
The Earned Income Tax Credit (EITC) could put thousands back in your pocket if you qualify. The Child Tax Credit offers up to $2,000 per child, with a portion being refundable. If you or your child are in college, the American Opportunity Credit gives you up to $2,500 per student.
And if you made energy-efficient upgrades to your home—think solar panels or new windows—you might qualify for energy tax credits. Credits are the closest thing to free money the government gives, so don’t miss them.
The Secret to Paying Less? Start Early
There’s a reason the people who get the biggest refunds aren’t the ones rushing to file on April 15th. Those who take the time to prepare for tax season well in advance avoid costly mistakes, catch hidden deductions, and position themselves for the best possible outcome. From organizing receipts to understanding which credits apply, planning ahead can mean the difference between keeping more of your money and overpaying.
Side Hustles and Business Write-Offs: The IRS Won’t Tell You, But We Will
Small business owners and freelancers have tax advantages that salaried employees don’t. One of the biggest perks? Self-employed individuals can contribute up to 25% of their net earnings to a Simplified Employee Pension (SEP) plan, with a maximum contribution limit of $69,000 for 2024. That’s a serious tax break and a great way to build wealth.
That home office? Deductible. The laptop you use for work? Business expense. Even the Starbucks you bought while working could count as a meal deduction. Even if your business is just a small side hustle, don’t let the IRS trick you into paying more. Treat it like a business and use every advantage available.
The IRS is Watching—So Keep It Legal
Let’s be clear: tax fraud is not the move. The goal is to keep more of our money within the boundaries of the law, not to get hit with an audit or penalties.
Keeping detailed records of expenses, saving receipts and invoices, and logging mileage if you use your car for business are crucial. The IRS counts on people being too scared or lazy to claim what’s rightfully theirs, so staying organized is key.
File Smart, File Strategically
If you’re just handing over your W-2, accepting whatever refund they give you, and moving on—you’re doing it wrong. Filing early helps prevent fraud since scammers love to file fake returns before you do.
If your deductions add up to more than the standard deduction, consider itemizing to lower your taxable income even further. And if your taxes are complicated, hiring a professional might be worth it—the money you save usually outweighs the cost.
The Final Word: It’s Our Money, Not Theirs
The IRS is expecting a hefty check from us this year. But guess what? They’re getting less than they think. We’re using every legal deduction, credit, and strategy to make sure we keep as much of our hard-earned money as possible.
Because at the end of the day, we worked for it—it’s ours. And we’re done overpaying.
