(NewsNation Now) – Nothing is certain except death and taxes, Ben Franklin said, and this year the IRS shows the pandemic is just as over as the rest of us. Of course, as the IRS shows, it’s by bringing the tax filing deadline back to normal.
Tax expert Lisa Greene-Lewis joined “Morning in America” ââon Monday to help sort out changes to tax returns caused by layoffs, rising unemployment, tax credits and other financial bonuses unique to the pandemic.
One important thing to keep in mind is one of the most popular parts of pandemic assistance: the child tax credit. These payments were an advance on the credit you get when you file your taxes each year, not a âtop upâ. Therefore, you will likely see a smaller tax credit available per child when you file this year if you took the CTC checks. You will want to have Form 6419 ready, which shows the amount of advances received.
While she could not speak to any possible credits currently being discussed by Congress that could retroactively affect 2021 taxes, Greene-Lewis pointed out that there were tax breaks and increases in personal deductions carried over from 2020 that would be. useful this year. Deducting cash contributions to charity and using the 2019 income to calculate the income tax credit were two of them.
The EITC’s âlookâ credit can be huge, according to Greene-Lewis, allowing a family with three children to earn up to $ 6,700 in tax credits.
For those who received stimulus checks but didn’t get all they could have collected, Greene-Lewis said they can balance the scales when depositing. The Recovery Rebate credit allows filers to deduct the amount of relief they were entitled to but did not receive.
As always, there are tools online to help you file your taxes that are updated regularly, or you can always hire a professional âin personâ to walk you through the process.