The IRS Has Yet To Release New Tax Laws

By Alice Horton-Barr, CEO, Honest Abe's Taxes, Inc.

Like most years, we enter January without full knowledge of the tax law or when we can begin to submit your returns (after you get your W-2 and other documents). We do have some information that is vital to share with taxpayers.

In January, the IRS will be mailing out vital documents to your 2021 tax filing. You need to keep tract of these documents: 1) IRS Identity Theft Pin, if you are registered; 2) Interest Income Statements when the IRS gave you Interest Income because they held your refund for so long; 3) Letter 6475 which identifies the dollar amount of Stimulus for the $1400 round that was sent or deposited to your mail/bank; and 4) Letter 6419 which will tell how much the IRS sent you in early Child Tax Credit from July through December.

One new tax law is giving a bigger credit for Child Care Credit Expenses. It is refundable this year. For one child you can be covered up to $8,000 and for 2 or more $16,000. Due to the refund ability it is HIGHLY RECOMMENDED that if you claim this credit you provide your tax preparer a completed W10 or substitute W10 from your day care provider. This form should show who was paid, their Federal EIN or SSN, their address, the amount you paid them, the child that was covered by Day Care Expense and an authorized signature of the Day Care Facility.

Also this year it is becoming more important that when you come in to have your taxes prepared you have proof your dependents lived with you. Day Care Receipts, W-2, SS Income, Bank Account, Mail with their name at your address, Health Insurance Coverage, A Doctor or School Record, your Lease with their name on the lease are all great documents to bring. You only need to bring one but two does not hurt. If you had coverage through the Market Place, you must bring in your form 1095A showing your coverage information for your taxes to be prepared accurately.

We have moved to 259 Claremont Avenue, Tamaqua (Hometown) but look forward to continuing to serve our established clientele and especially look forward to serving the towns around our new location: McAdoo, Kelayres, Mahanoy City, Tamaqua, Jim Thorpe, Nesquehoning, Coaldale and Lansford. Call 570-6688297 to schedule your appointment!