There have been some updates to certain credits and deductions for the 2021 tax year.
The tax season only has a day and a half remaining, and many people are starting to get their affairs in order to make the process easier next year.
The IRS still suggests filing as early as possible to avoid possible delays in refunds.
Related: Make sure to do these things before tax season ends in just two days, you could miss out on $1,000s
Before filing your taxes, know about these 3 changes
First, the child tax credit saw a major overhaul for 2021.
This means with all the changes and new laws for the year, both parents and the IRS may get easily confused.
To make it easier, the IRS is issuing anyone who received advanced payments a Letter 6419 which details any money received.
The letters have already started being sent.
Anyone who qualified but did not get a payment this year can claim the full amount on their tax return next year.
If you’re a family that doesn’t normally need to file, be sure to do so to get that credit.
Another change to taxes this year are stimulus payments and the recovery rebate credit.
Some people were eligible for the stimulus payment but did not get it because the decision was based on outdated tax returns.
This is where the recovery rebate credit comes in.
You can file your taxes to claim that credit and get the difference, or full amount, based on accurate tax information.
In early 2022, anyone who got a stimulus check will receive a Letter 6475 detailing the amount they received so their tax returns are accurate.
Charitable contributions are slightly different for 2022.
If taxpayers aren’t itemizing their deductions, they can take a deduction for as much as $600 if married.
If single, they may take a $300 deduction.
This is for cash contributions made to qualifying organizations.
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