Alva Review-Courier -

Tax season was extended last year due to the pandemic and the deadline postponed. If you waited on a refund, it may not have come until November but this year things are back on schedule.

There are some changes you will want to be aware of. A law passed in 2017 nearly doubled the standard deduction, which reduced the number of taxpayers who itemized but the tax code for standard deductions has some credits and deductions that are new.

The CARES Act, passed in early 2020, allows you to deduct $300 for cash donations to charity. That’s an above-the-line deduction that will reduce your taxable income. It was designed to encourage contributions to non-profits, which have been struggling during the pandemic. It is a deduction allowed per return, not per person.

Children are a joy, and a new baby brings a $2,000 tax credit. Credits, unlike a deduction, reduce the tax bill dollar-for-dollar. When schools switched to remote learning, many parents were forced to pay for childcare and if you are some of them you are eligible for up to 35% of the cost up to $3,000 or $6,000 for two or more. That’s more good news for non-itemizers but if you were unemployed, you maybe hit with tax on the benefits you received including the $600 per week granted by the CARES Act. Expect a form 1099-G.

While death and taxes are unavoidable, it’s wise to consult professionals in both fields to keep from getting a surprise!