On Monday, the IRS began accepting and processing returns for the 2024 tax filing season. And this year, some taxpayers could see bigger refunds.
There are a few changes with how you file that could have an impact on your wallet this year.
We spoke with Tomas Pueyo, a tax manager at AAFCPAs about this tax season.
“What people really need to be aware of is what deductions and what credits are available for you.”
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That includes things like charitable donations. Massachusetts taxpayers will be able to deduct charitable contributions on their state income tax returns for any donations made after January 1, 2023.
“You're only limited to your 5% income,” explained Pueyo.
The state also increased the cap on rental deductions from $3,000 to $4,000.
There are also credits for home improvements. Through the Energy Efficient Home Improvement credit, homeowners can write off 30% of certain qualified expenses including the installation of energy-efficient doors, windows and insulation.
“It's very applicable for people just because they're making improvements to their homes, on a daily basis,” said Pueyo. “If you install solar panels, it would really be helpful for you to take a credit.”
If you can’t afford to pay Uncle Sam right away, the IRS has agreements available. Visit mass.gov/dor or irs.gov/payments to set one up.
“They'll be able to assist you. And you can have a few installments. But as long as you file your taxes timely and apply for a payment plan, they should be able to arrange that.”
Families in Massachusetts will also see a bump in their child tax credit – from $180 to $310 per dependent.
And more relief could be coming. A bipartisan tax package with proposed changes to the child tax credit is making its way through Congress. If passed, the adjustments could provide a bigger tax break to lower-income families filing 2023 taxes.
If you still have questions and need to talk to an expert, look for a tax preparer who belongs to a national organization of tax professionals -- one that is open year-round. Make sure that they sign your tax form and provide their tax ID number.
The IRS criminal investigation division warns taxpayers to be very careful when choosing a tax preparer. They see unscrupulous preparers every year, who file false returns to defraud their clients. Remember: even if someone else prepares your return, you are ultimately responsible for all the information on it!
As for that tax deadline, mark your calendars for April 17. Massachusetts and Maine residents will get a couple of extra days to file their taxes this year - April 15 is Patriots Day, a legal holiday in Massachusetts and April 16 is Emancipation Day, a legal holiday in Washington D.C.
Your return needs to be filed and or paid on or before the 17.
“Because at the end of the day, the IRS is going to like you. Your tax accountant is going to like you,” said Pueyo. “Get it done with and you'll be in good shape.”
