Don’t Throw Your Money Away: Tax Credits That Aren’t Often Mentioned
This is the year to seek tax assistance if there was ever one. Many consumers are unaware of the numerous tax benefits available.
Liberty Tax and other tax preparers are currently experiencing a surge. Customers like Alex Trejo, who is just establishing his own small business, are scouring the internet for any tax savings they can find.
“I need to figure out what I’m going to do, how I’m going to get this done, and how much it’ll cost me.” Trejo described the situation as “overpowering.”
Gina Pinto, the owner of a franchise, claims that a professional can locate many credits that consumers overlook on their own.
“This year, there are several new credits, especially for child care. “They may not be aware of these changes if they do it at home,” Pinto explained.
Because of all the stimulus and credits that have been given out throughout the pandemic, tax preparers say this year’s season is a little more complex than previous years.
“The only way they can do it if they didn’t get the stimulus is to file a tax return,” Pinto added.
Many of Gina’s clients are unaware that they are eligible for credit for the following:
Child tax credits if you were shorted Charitable donations Stimulus checks if you didn’t get the full amount.
Even if you accept the standard deduction, the Dependent Care Credit, which was recently increased to $8,000 for daycare, you can now claim up to $300 back.
Earned income tax credit, which according to the IRS, 25% of people do not claim because they do not understand what it is.
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Finally, financial journalist Kathy Yakal of PC Mag suggested that if you established a home office during the epidemic, you might be eligible for a tax break. But…
“Designating a portion of your home as a home office is a difficult deduction to make. “You must set off a piece of your home for business purposes only,” Yakal explained.
Finally, you could not qualify if you worked remotely as a W-2 employee last year. So, to avoid wasting money, seek advice from a tax expert.