As per reports by wnem.com, the tax season has begun, and the Internal Revenue Service expects delays due to various factors.
The start of tax season comes with a caution for parents: changes in the tax law may cause your return to be delayed.
According to Debbie Kinnish, proprietor of Darby Tax Service in Grand Blanc, the pandemic impacted a specific tax credit.
“The most important change had to do with the child tax credit,” Kinnish said.
It did go up, and part of it was released over the course of six months. According to Kinnish, knowing the exact amount is essential.
“So, people are going to receive a letter. They went out in December,” Kinnish said.
Individuals who did not receive this letter may find the amount in their bank account or on IRS.gov.
“We need to know that amount. Then, they’ll get the remainder of any credit available on their tax return,” Kinnish said.
The money received from stimulus checks is another useful factor to pay attention to.
“That’s one of the things that could really slow down a tax return this year. You need to know the right information,” Kinnish said.
These types of mistakes have resulted in a near-ten-million-return backlog as of 2020. The IRS is addressing this backlog.
“Last year, people had to report the amount of stimulus, and sometimes they took a guess. They didn’t remember. And that is what the IRS has to go through by hand now,” Kinnish said.
According to Kinnish, these issues will not contribute to the huge backlog.
“No. I don’t think so because there were late tax law changes last year. We were really dealing with it on the fly. Some of those changes were made in March, far into the season. This year we know what we’re looking for,” Kinnish said.
She advised taxpayers to avoid procrastination and to seek a specialist if necessary.