JACKSONVILLE, Fla — It’s time to file your taxes. A Jacksonville CPA says there have been about seven changes to the tax laws in just the past two years.
You have the opportunity to get more money back this year on your tax return.
All the numbers and forms are daunting, but important changes to tax laws could put more cash in your wallet.
“I think the first thing is everybody really needs to be patient," said Timothy Raines, CPA with Patrick & Raines CPA.
1. Child Tax Credit
Child Tax Credits are a hot topic because they increased to $3,000 per child in 2021, which could add a nice chunk on to your refund… unless…
“Some people began getting advanced credits in July and other people elected out of it," Raines said. "So come tax time, a couple of folks may be surprised to know that they already got part of their refund. That’s what they were getting each month.”
2. Retirement Tax Law Changes
There have also been changes in retirement tax laws. You can still make a 2021 contribution to your traditional IRA and receive a deduction of up to the contribution limit of $6,000.
Raines says you have until the filing deadline to make a contribution.
3. Stimulus Checks
If you didn’t get one of your stimulus payments in 2021, be sure to claim it.
“That will be reconciled," Raines said. "For some reason if you didn’t get it, when you file your return you can get it at that point.”
4. Charitable Donations
If you gave any money to charity in 2021, enter that info. Raines says you don’t have to itemize.
5. Higher Education Students
Look out for the lifetime learning credit. If you, or your dependent, pay expenses related to higher education or are enrolled at an eligible institution, you can get a 1098-T form from your institution.
6. Residential Energy Property Credit
Raines says up to 26% of qualifying expenses on your home can be deducted per year. Learn about what qualifies here.
7. Electronic Refund & Direct Deposit
Raines says to get your refund quicker, set up direct deposit. File your electronic tax return if you want the IRS to complete your tax return quicker.