Tax Season 2021: Changes, additions & opportunities to collect more money
OMAHA, Neb. (WOWT) - It’s too early to tell if the IRS whirlwind of 2020 will become a sequel this year.
Their department, like thousands more across the country, also took a hit as they juggled an intensifying pandemic and worked to issue millions of stimulus checks.
So, experts are still encouraging people to have patience as they wait for their tax returns to be processed. They also want people to keep in mind there’s some changes that could help them snag a few extra bucks.
1. If you didn’t get a full stimulus check or if you didn’t receive one at all, it’s not too late.
John Gross, an accountant and Owner of Midwest Accounting and Tax Services, Inc. explained the federal government put out the 2020 stimulus based on everyone’s 2019 income, but that money was distributed for and during the 2020 tax year.
So, if you made more money in 2019 and as a result never received that stimulus, you can claim that on your taxes to get an additional amount of money or potentially the full sum.
2. New Property Tax Credit
Gross also said there’s ”A major change for Nebraska homeowners or anyone with a rental or investment property.”
Those individuals are “entitled to a tax credit based on the taxes paid for that school district.” Taxpayers should check the Nebraska Department of Revenue and look up their parcel number to determine how much credit they qualify for.
3. New Tax Law for Charitable Donations
The IRS will allow people who donate to non-profit organizations an above line deduction of $300 for their contribution, according to Gross.
Usually, only taxpayers who itemize their deductions qualify for the charitable contribution deduction. The deduction reduces taxable income after the donor’s adjusted gross income (AGI) is calculated. AGI determines eligibility for specific tax breaks.
Finally, for anyone who is not completely comfortable with in-person tax appointments, but would prefer to have their return completed by a professional, Gross suggested asking if a ‘drop-off’ option is available.
He said his company and many others will allow people to leave their tax information at the office to be completed on their behalf, in order to maintain distance and safety. The process will be secured and all communication would be virtual.
Copyright 2021 WOWT. All rights reserved.