Many of you have probably received your tax forms and are ready to file but this year comes with good news and bad news for taxpayers. There is a tax credit that everyone has seen for the last two years that is no longer available. So that means people are going to be out either four hundred or eight hundred dollars. That money loss in pockets comes from the Making Work Pay credit that has expired. That was a credit that was applied to the bottom line of your taxes with no questions asked. Meaning several people will be upset with the loss.
"Most people are seeing that small decrease in their returns this year," says Shaughna Mott, Jackson Hewitt.
Mott has been preparing taxes for five years now and says all the returns she has done this year are for less money. Now that the bad news is out of the way. There are some people that will benefit. If you are self-employed you score big.
"Those that have self employment income on their tax return will see their self employment go from 12.4 to 10.4 percent," says Mott.
Getting two percent back when filling for self-employed is great. People that aren't self-employed aren't left out. You should have noticed that the amount you pay into your payroll taxes is two percent less. But the Earned Income Tax credit is the way most people will get a good refund. If you have three or more children the amount you can count has been raised more than a hundred dollars. Meaning you have more flexibility with a larger family.
For college students there is a benefit that is continued from last year. It's the American Opportunity credit that gives students a part refund, on their tuition up to 25 hundred dollars.
"Forty percent of that is refundable. Which means that if they didn't even work and have no income they can still come in and file a return and get a refund of one thousand," says Mott.
The best tip Mott says is to start early to make sure that you get everything you need in place.
