MILWAUKEE — Nashika Thomas made a mistake on her own taxes 12 years ago that led to her owing money for five years.
"I did my taxes on my own, and I got one wrong number, and I ended up owing for five years," Thomas said.
That mistake led her to start crunching numbers to help others avoid the same trouble as the owner of AmPm Tax Preparation Services.
"That’s what made me get into doing taxes and tax planning," Thomas said.
Thomas says there are credits people may already know, like the Earned Income Tax, which helps low to moderate-income workers and families. But there are other credits people may miss.
"There’s a lot of credits," Thomas said.
"Homeownership credit and first-time home-buyers credits," Thomas said.
This includes credits for making energy-efficient improvements on doors and windows, and installing products like solar panels.
The IRS Credit and Deduction Finder can help taxpayers spot these credits with just a few simple questions, which could mean hundreds or thousands of dollars back in their pockets. For speed and safety, Thomas recommends filing early.
"Don’t wait until April 15th. That’s the ninth hour. The last minute. You should do it as soon as you can," Thomas said.
If looking ahead to next year, taxpayers should keep their W-4 updated. That document tells employers how much federal income tax to withhold from a paycheck. Failing to update it could cost money, especially after getting married, having a child, or starting a new job.
"People don’t know this—it will keep rolling over," Thomas said.
"Things change throughout the year," Thomas said.
But no matter what changes occur, Thomas has one main piece of advice.
"Just file your taxes," Thomas said.
Taxpayers can also follow these tips to maximize their returns:
- Use IRS tools like the Credit and Deduction Finder and EITC Assistant for quick eligibility checks.
- Review life changes, including marriage, divorce, a new child or dependent, school enrollment, a home purchase, energy upgrades, or a job loss.
- Know the difference between refundable and nonrefundable credits. Refundable credits, like the EITC and Additional Child Tax Credit, can give cash back even if nothing is owed.
- Check state-level credits, as states offer credits separate from federal ones.
- Use good tax software or a professional, as built-in prompts or expert questions help uncover overlooked credits.
- Compare with last year’s return to see if you still qualify for the same credits, unless rules have changed.
- Stay updated on IRS changes, because credit eligibility and amounts can change annually.
- Utilize free tax services like United Way's VITA tax services.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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