Tax filing season is underway and anyone who thinks they're owed a refund should file right away.
The IRS is still dealing with backlogs from previous years and that could delay the processing of your return.
7 On Your Side's Nina Pineda has tips on how to get your full refund and ensure you're filing your taxes correctly.
If you didn't qualify for the third economic impact payment, commonly referred to as the 'stimulus check,' or didn't get the full amount, you could be eligible for the recovery rebate credit.
"The full amount of the third stimulus payment is $1,400 per person or $2,800 for married couples filing joint and an additional $1,400 for each qualifying dependent," debt relief attorney Leslie Tayne said. "So that is all great news."
Child Tax Credits
Child tax credits got a lot sweeter during the 2021 tax season as the government increased the credit to a maximum of $3,000 per child 17 and under and $3,600 for a child 5 and under.
The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes.
Employees are not eligible to claim the home office deduction. Taxpayers must generally, exclusively, and regularly use part of their home or a separate structure on their property as their primary place of business.
Whether it's a full-time job or a side hustle, gig workers must report earnings on their tax returns.
"You want to pay estimates at least quarterly to avoid any potential issues when you go to file your taxes," Tayne said.
This year, jobless benefits received in 2021 will be taxable on the 2021 federal income tax return.
If you didn't have taxes withheld, and most people don't, you could be looking at a bigger tax bill than you'd expect.
Loan cancellation for post-secondary education is no longer considered taxable income.
"If you received forgiveness of debt on any of your student loans it's not taxable currently through 2025," Tayne said.
Instead of a $300 deduction per return, it's $300 per person, so if you file jointly you could deduct up to $600 per charitable donation.
"Keep track of it and donate," Tayne said.
If you're getting a refund, triple-check that your bank account and routing numbers are correct.
The deadline to file is Monday, April 18, but be aware that last year the date was moved several times.
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