(DailyDig.com) – Tax filing season is well underway for most of America. Many may still be scrambling to complete their returns, but if you haven’t done your taxes yet, it may actually be a good thing. There are some changes you need to watch for when filing this year.
Taxes are changing a lot this year. Here's what that means for you. https://t.co/HcZzGlLyxL
— Money (@Money) March 9, 2022
Let’s take a closer look:
- #1: The deadline has moved. In 2020, the Internal Revenue Service (IRS) moved the deadline back several times due to the pandemic. This tax season the IRS moved it again but only by a few days, from April 15 to April 18. Keep in mind this is for federal income tax; states may vary.
- #2: Unemployment is taxable income in 2021. Unlike in 2020, people who filed for unemployment and received benefits last year will need to claim that income on their taxes.
- #3: Standard deduction change. The IRS increased the standard deduction amount, which serves as an amount people can reduce their taxable income by. Last tax season it was $12,400; this year it’s $12,550 for single filers and $18,800 for joint filers.
- #4: Tax credit got bumped. Earned income tax credits also changed this year. Americans aged 19 and over earning certain amounts up to $21,340 for single filers and $27,380 for joint filers are eligible for the credit. The max amount for the 2021 tax year a person without children can receive is now $1,502.
These aren’t the only changes Americans will see on their taxes this filing season. Money.com gives more examples but be sure to look into all the changes the IRS has made to ensure you file properly and get the most back if you’re receiving a refund.
Copyright 2022, DailyDig.com
