ROANOKE, Va. – Tax filing season is underway, and I’m sure you want to get a large rebate. However, filing can also be a headache for some people.
10 News is working for you about what you need to make the process a little easier and what the new credits are this year.
While you have until April 15, President David Kembel with Kembel Tax Service, Inc., said the number one piece of advice is to make sure that you have all your documents together.
“Look at last year, whatever you did last year and then think of any changes. I got a new job. I opened an investment account, and then wait on all that and make sure that you get it all,” said Kembel.
The documents that you will need to file your tax returns include your social security number, dependent information and any forms that indicate sources of income, like your W-2s. Kembel also said don’t forget your deductions.
He also said you should be patient and make sure you have everything.
“We see so many people that come in and file right now, and then they are back a month later adding a W-2, and then they are giving back some of the refund that they got,” said Kembel.
With tax season being here, that means there are plenty of new credits.
One new credit is the Energy Efficient Home Improvement. This covers any new energy projects in your home, including heat pumps, skylights, insulation materials and central air conditioners. You can claim up to $2,000 a year for this credit.
Another new credit is Residential Clean Energy. Residential Clean Energy is for anyone who’s invested in renewable energy for their home, like solar panels. There are also changes to the Electric Vehicle credit.
“It’s changed a lot. There are limits on how much the vehicles can cost, which is going to weed a lot out, and there are limits to how much income the taxpayer has. And so, really wealthy people have a lot of income, [and] they make too much to get the credit, and if you’re going out and buying a $100,000 electric car, you’re not going to get a credit. It costs too much,” said Kembel.
You could receive a maximum credit of up to $7,500 for qualifying vehicles. There’s also a new maximum income limit of $150,000 for single filers and $300,000 for married filers for credit eligibility.
It’s worth noting that the standard deduction for married filers increased to $27,700, single filers is now $13,850 and head of household filers is $20,800.
The 410K contributions are limited to $23,000 annually if you’re under 50 and $30,500 for anyone 50 and older.
Finally, if you received the Virginia tax rebate, in the fall, you don’t owe taxes on the money you received.