Tax season is quickly approaching and experts say being informed before you file...pays off.
CPA’s say there's good news for taxpayers this filing season...
First, due to a District of Columbia holiday, you get an automatic extension!
Taxes are due April 18th this year rather than the usual April 15th due date.
Also, tax experts say there's a new payroll deduction that benefits most employees.
“Before this year each individual that was paid on a W2 got 6.2% withheld from their W2 for Social Security tax. Well for the 2011 year, the individual is only going to have 4.2% withheld from their checks so that's a 2% raise on a person’s gross wages for the entire year,” said Dothan CPA, Jason Canady.
Canady says being aware of available tax credits is another benefit when filing.
He says many people miss out on unexpected tax opportunities like this one...
“Certain tax payers may qualify for the residential energy credits such as heating and cooling units and other qualified energy efficient property. It can be up to $2,000.00 or 30% of the qualified purchase.
Also, if you've spent money on childcare, you may be eligible for an additional credit.
“They can get anywhere from 20 to 35% of the amount paid up to $3,000.00 per child,” said Canady.
Experts say, another thing to remember...it always pays to seek higher education.
You can get a maximum credit of $2,500.00.
For your convenience, there's a tax resource guide on the homepage of our web channel...
It includes all tax forms you may need as well as other helpful information.