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7 Ways To Grow Your Tax Refund by $1,000 in A Year

Josephine Nesbit

Thu, Apr 10, 2025, 6:01 AM 3 min read

Your tax refund isn’t just a bigger payday — it’s an opportunity. Whether you’re starting with a few hundred dollars or the full average refund of $3,284, according to the IRS, there are smart, realistic ways to grow your return by $1,000 within a year.

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Here are seven expert recommendations on ways to grow your tax refund by $1,000.

“You can claim a lower number of allowances from your paycheck,” said Melanie Musson, finance expert with InsuranceProviders.com. “For example, if you’ve been claiming four allowances, you could change that to two and significantly increase your tax refund.”

You can also request your employer to withhold a certain amount on Form W4, Step 4C, to request additional tax you want withheld each pay period.

“If you get paid weekly, put $19, bi-weekly $38, bi-monthly $42 and monthly $84. Note that this only works if everything else stays about the same in terms of your income, filing status, and dependents,” said Kari Brummond, an accountant with TaxCure, in an email.

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If you’re self-employed, you can increase your estimated quarterly payments to boost your tax refund. “To increase your refund by $1,000, add an additional $250 to your payment every quarter,” Brummond recommended.

Going green can pay off during tax season.

“Until 2032, you can get a credit worth up to $2,000 for installing qualified heat pumps, water heaters, biomass stoves or biomass boilers in your home,” Brummond said. The credit is 30% of the equipment, up to $2,000. “You can also claim 30% of the cost of energy-efficient home improvements like new doors or windows, up to $1,200.”

Musson added that you can also purchase an electric vehicle or solar panels. “You’ll receive well over $1,000 next year if you purchase a qualifying green energy product,” she said.

If you have a side gig, invest in a tool to help grow your business.

“For example, if your side gig is lawn care, use your tax refund to invest in an edger,” Musson said. “Then, thanks to your new tool, you can finish lawns more quickly and earn more money.”

You can reduce the upfront tax credit if you purchased health insurance through the Healthcare Marketplace. “To bump up your refund, note a slightly higher income on your marketplace profile,” Brummond said. “Then, you’ll pay a bit more in monthly premiums, but you’ll get more money back when you file your return.”

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