W2 Wednesday: Tax tips to get you the maximum refund
PITTSBURGH (KDKA) - It's February 1!
So that begs the question - have you seen your W2 yet?
Whether it's online or in the mail, your W2 should be on the way today.
So, is there an advantage to filing your taxes as soon as it comes or should we wait?
Last year, 75% of us got a refund and if you've got a check coming your way, why wait?
Some view the IRS as a yearly savings plan with the refund check being the pre-summer bonus. The numbers are what they are, so by waiting, you're only delaying your payoff.
"The sooner you file, the sooner you can get your tax refund," said Lisa Greene-Lewis a tax expert from TurboTax. "The IRS still states that they'll issue nine out of 10 tax refunds within 21 days or less of accepting your return."
She said last year they crunched the one-time numbers under the pandemic-driven American Rescue Plan and "people that were eligible for those may [now] see a lower refund."
For example, the child tax credit during the pandemic, according to Greene-Lewis, was increased up to $3,600 and now it's going back to $2,000. That also includes the child and dependent care credit.
"It was up to $8,000, if you had two kids, it's going back to $2,100 and $1,050 with one child," she explained.
Also, the earned income tax credit that was open to everyone a year ago, "now it goes back to - you have to be 25 in order claim that or under the age of 65."
However, it is now possible to make an inflation adjustment on the standard deduction, according to Green-Lewis.
"That's been increased to $12,950 if you're single and then $25,900 married and filing jointly," she said.
Lastly, she said not to forget that whatever you claim as a deduction, you want to have backup information for it.
One of the most common omissions that will raise a red flag every time is forgetting your child's social security number. That may be very real to you running around your home but the feds do need to see that number.