For many immigrants in the United States, tax season can be an opportunity to obtain a significant refund if planned properly. However, due to the complexity of the tax system, it’s common for people to fail to take full advantage of available credits and deductions. Here’s how you can maximize your tax refund and ensure you’re complying with the law.

1. Learn about the available tax credits

One of the most important aspects of maximizing your refund is taking advantage of tax credits. Unlike deductions, which reduce your taxable income, credits directly reduce the amount of taxes you owe. Some of the most common credits for immigrants include:

• Earned Income Credit (EITC): This credit is designed for low- to middle-income workers and can provide a significant refund, especially if you have children.
• Child Credit (Child Tax Credit): If you have children under 17, you may be eligible for this credit, which can reduce your tax debt or increase your refund.
• Child and Dependent Care Credit (Child and Dependent Care Credit): If you pay for childcare while you work, this credit can help you recover some of those expenses.

2. Make Sure You Use an ITIN If You Don’t Have Social Security

If you don’t have a Social Security number, it’s essential that you obtain an Individual Taxpayer Identification Number (ITIN) to file your taxes. An ITIN not only helps you meet your tax obligations but also makes you eligible for certain tax credits. Remember that your ITIN must be current, so check if you need to renew it before filing your return.

3. Deduct Eligible Expenses

In addition to credits, deductions can help you reduce your taxable income and, therefore, the amount of taxes you owe. Some common deductions include:

• Medical Expenses: If your medical expenses exceed a certain percentage of your income, you can deduct them.
• Contributions to retirement plans: Contributions to accounts such as a traditional IRA may be deductible.
• Intereses de préstamos estudiantiles: If you’re paying off a student loan, the interest may be deductible.

4. Seek Professional Help if Necessary

The U.S. tax system can be overwhelming, especially if you’re unfamiliar with its rules and requirements. If you have questions or your tax situation is complex, consider hiring a certified tax preparer or seeking help from nonprofit organizations that offer free assistance to immigrants. A professional can ensure you’re taking advantage of all available opportunities and filing your tax return correctly.

5. File Your Taxes on Time

Finally, it’s crucial to file your taxes before the deadline, which is generally April 15th each year. If you can’t file on time, you can request an extension, but remember that any tax you owe must be paid by the original deadline to avoid penalties and interest.