Finance & Insurance

Various Ways to Save Money When Filing Your Taxes

Are you a taxpayer? Are you looking for ways to save money during the covid time? Due to the coronavirus pandemic and the tough economic times that were witnessed in 2020, the 2021 tax season will be different from the past years. 

Last-minute changes to the tax season were announced by the Internal Revenue Service (IRS) and the deadline for filing individual taxes was moved from the 15th of April 2021 to the 17th of May 2021. Since the current economic circumstances are tough for many individuals, the IRS is working to ensure that taxpayers have enough time to navigate their difficult financial situation while still working on their tax administration responsibilities. 

As you are prepared to file your taxes this year, don’t forget to take advantage of the H&R Block promo codes as they will help you get some discounts just like they used to before the pandemic started. If you are looking to get more from your tax savings this year, these four strategies will help you keep a few more dollars in your pocket. 

1. Take Advantage of The Covid Relief Measures

The year 2020 was financially tough for many people. So many taxpayers were laid off while others had to accept harsh pay cuts and still cope with the damaging effects of Covid 19. If you were in any way affected by the pandemic, you can take advantage of the covid 19 relief packages that were passed in 2020. For example, if you were laid off in 2020 and you received unemployment benefits, you should know that unemployment benefit is taxable. However, make sure you find out whether you qualify for the new deductions such as the saver’s credit and the care credit if you have a child dependent. 

If you are self-employed and at some point, you got sick, went into quarantine, or were taking care of a sick relative, you may be eligible to claim a tax credit under the new Family First Coronavirus Response Act. 

2. Explore Missed Credits

Missed credits are those credits that many taxpayers miss during every tax season that can help them save a lot of money on their taxes. One important credit that you might miss is the earned income tax credit. For example, a taxpayer with a family of three children can have his earned income tax credit go as high as $6,557 but may fail to claim because they don’t know that they are eligible. Before you submit your return, do your research and if you can, talk to a tax expert so that you don’t miss these opportunities to save some money. 

3. Claim the Friend or Relative You Have Been Supporting

One thing you should know is that, if you have been supporting your spouse, your relative, or a non-relative, you may be eligible to claim them as dependents. Make sure that you go through the rules and find out if you qualify. 

If you have a non-relative, for example, a boyfriend or a partner who has lived with you for a whole year and this individual did not earn more than $4300 in 2020 and they also did not provide half of their own support in 2020, you can claim the other dependent credit and get up to $ 500 for the non-child dependent.

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