Expert breaks down what taxpayers should prepare for this tax season
MEMPHIS, Tenn. (WMC) - January 24 marks the start of tax season.
Jackson Hewitt’s Chief Tax Information Officer Mark Steber says taxpayers can expect quite a few changes.
“2021 is kind of the culmination of three years of pandemic changes, life changes, tax law changes,” he said.
Folks can expect to receive more tax filing documents than in years past.
“Taxpayers may get a statement related to their stimulus,” he said, “It seems years ago back in March that everybody got that $1,400, but you will get a statement from the government that you will say important tax document. Save that because many Americans may be due more money if they had a new child, adopted a child, or fostered a child in 2021.”
Steber says parents may receive a larger refund due to last year’s child tax credit thanks to the American Rescue Plan Act of 2021.
“Child tax credit took an enormous jump - $3,600 per person, $3,000 for the older children. You’ll receive a statement for that if you’re one of the 35 million Americans that received advanced payments,” said Steber.
Families that received a partial advance of a child tax credit will receive the other half after they file their taxes.
While stimulus payments are not taxable, that’s not the case for unemployment.
“If you’re one of the 40 million that had unemployment benefits during the year, you’ll need that statement as well because unfortunately that’s changed back to taxable for 2021,” said Steber.
He suggests hiring an expert to help file their taxes this year and encourages to file early.
Steber says it gives taxpayers plenty of time to gather all necessary documents they need.
This year’s tax deadline is April 18.
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