Here’s what you need to know about tax season – Illinois (WLS) The official tax season kicked off Monday and the I-Team is finding out what you need to know to avoid tax filing problems and confusion.
Start saving all of those documents you’re getting in the mail and email, in a folder even though you can start filing now, some people may have to wait a bit.
Some taxpayers need to be on the lookout for two letters being sent out later this month from the IRS. One is for those who recieved Advance Child Tax Credits. The other is for those who qualified for a 2021 Economic Stimulus payment.
“That was basically $1,400 per person, including dependents, that was well received, it’s not considered taxable income,” CPA and tax expert Raymond A. Miller told the I-Team, “And you kind of get the best of both worlds because if you received an amount that was too little, the extra amount you can claim as a rebate on the tax return for 2021. But if you were overpaid, you do not have to pay that back to the government.”
If you received unemployment in 2021, it will count as income, unlike last year’s tax filing season.
“As of today, the entire unemployment that you received in 2021 is considered taxable for both state and federal purposes,” says Miller.
If you’re filing jointly the amount of charitable donations you can claim has doubled from last year, to $600.
If you don’t work for a company and have an LLC or business, you may be able to qualify for work at home write-offs.
“If you’re considered an independent contractor, so that would be a 1099 person, you can still deduct those and those are not affected by the pandemic or anything,” Miller added.
The IRS has also issued a warning saying that consumers can expect more tax return delays this filing season. Remember to file electronically, use the direct deposit option and file early.
Click here for the IRS outline of refund timing and what to expect in advance of the tax deadline.
