HOUSTON – Have you done your taxes yet? If not, there are some new tax credits and deductions you need to know about so you get the most money back from Uncle Sam this year.
New filing deadline
The pandemic caused the IRS to push the tax filing deadline to May 17th, but then the big February freeze got Texans an even longer extension. Our federal taxes are now due June 15 but because of some new credits, if you can get yours done by May 17, you should.
Child tax credit
If you have children, you will get a much larger child tax credit this year. You will get the money by check. Payments will be sent from the IRS beginning in July.
Your 2020 tax return determines how much money you’ll get. So if you usually don’t file for whatever reason, you need to this year. Get it filed by May 17 so the IRS knows how much to send you.
New charity deduction
You usually have to itemize your taxes to claim donations to charity to get a deduction, but this year, if you gave up to $300 you can put that directly on your tax form 1040, and it will reduce your income before taxes are charged.
Two major credits for business owners
The Family Leave Credit and the Sick Leave Credit will help you if you took time off because you had covid, you had to quarantine, or if you have to care for a family member or child because of COVID and that caused you to miss work.
All you need to know is how much profit you made from your business last year and how many days of work you lost. IRS software calculates how much you’ll get. The credit can be up to $10,000.
Increased child care credit for 2021
If you have children and you have to pay for childcare so you can work, start saving receipts now. When you file your 2021 taxes, you’ll be able to get a Child and Dependent Care credit up to $16,000. This year, you can only get $6,000. You will need the documentation that shows how much you paid.