P.O.W. Financial Services with easy tips while filing your taxes
Money is at the top of everyone's minds right now, especially in this economy.
There are a few big things Marylanders are thinking about heading into this tax season.
Maresa Scott, from POW Financial Services, joined WJZ to share some tips to calm your tax anxiety down.
One of those issues is the child tax credit and what parents need to know.
"This is a very hot topic," Scott said. "As we all know, inflation is on the rise and a lot of people need their money back in their pocket. The child tax credit, if you remember during the pandemic, they did increase it to put more money in the taxpayer's pockets. Unfortunately, it is back down to pre-pandemic rates. So, for the nonrefundable portion, it's $2,000 per dependent that you claim that is 17 and younger. Then, you also have a refundable portion, which is $1,800 that you do get back as long as you do not owe the IRS and as long as you are eligible for a refund."
Student loans are another talker. Our state offers a tax credit for this as well.
"Everybody has student loan debt, do we not? I don't know about you all but my loans were not forgiven. I owe money," Scott said. "If you live in the state of Maryland, there's the Maryland Student Loan Debt Tax Relief Credit. You can get up to $5000, which is a lot of money, especially depending on how much you owe. The window for the application has closed. But, it opens every single year between July 1 and September 25, 2024. You want to make sure you get in as early as possible so you can get the credit for next tax season."
Scott also explains the mistakes you want to avoid.
"This happens every single year, unfortunately," Scott said. "Some of the most common mistakes are when you rush through your tax return, you are not double-checking it for errors. We've all been in school and our teachers always say slow down, doublecheck your work. It definitely applies to your taxes. What happens is once you submit the return, that is it. It's game over. If you made a mistake, now you have to pay to file an amendment, which will elongate the process. Commitment can take anywhere from 16 to 20 weeks. We don't need our money on hold right now."
"Another issue that I always see with taxpayers is they don't ask for help when they need it," Scott added. "If you are unsure about a tax credit, unsure about a deduction, it is important to reach out to a tax professional so they can understand what your specific situation is and give you the best tax advice based on that."
For more tips, watch the attached video.
