LITTLE ROCK, Ark. — Tax filing season is almost underway, and the process can be sometimes difficult.
Owner of All Tax Services, Rose Grounds, has been helping Arkansans with the process for over a decade and she explained that a lot has changed this year.
“With the tax law changes, credits went from, say child tax credit from three thousand thirty-six hundred dollars down to two thousand to fifteen hundred dollars,” said Grounds. “So, they need to be educated and be prepared to expect that smaller refund.”
Though last year you may have gotten a deduction for donating to a charity, Grounds said that the process has since changed.
“They could actually deduct $300 for single or $600 for married, filing joint on the above the line, charitable contribution well that has been eliminated,” said Grounds. “You can still deduct those things. Don't get me wrong, but you have to itemize your deductions.”
Like Grounds, Roshonda Franklin has also been gearing up to help her tax clients. She said that another difference this year is the digital sources of income that are impacting forms.
“Our digital creators, those that are on Facebook, Tik Tok, Instagram, they're making money and so now they are receiving 1099's,” said Franklin.
“If they sold digital currency. It's on the 1040 this year. So, the 1040 may look different," she added.
Franklin also shared that it may even cost you more to file this year.
“The differences in previous years that we have to do now, it may take us a little longer to do a tax return,” Franklin explained.
Both experts said that the key this year— is to not rush.
“It's actually more important to wait a little bit later on in the season to file and then also, you want to make sure you receive all your forms,” Grounds described.
You also want to make sure you’re prepared and know what you need.
“Get a game plan and don't be afraid to call your tax professional, your accountant,” said Franklin.
For more information on filing taxes this year, click here.