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Billings accountant highlights changes for tax credits for income tax filings

Posted at 12:15 AM, Jan 31, 2022
and last updated 2022-01-31 10:52:46-05

BILLINGS - It's been almost a week since the IRS started accepting 2021 tax returns.

The owner of a Billings tax company says preparing for some of the changes can help with getting get taxes done.

Becky Spencer, Laser 1040 owner and IRS enrolled agent, says it's important to know what's new and what documents to bring.

She talked about several areas including the Child Tax Credit.

"Letter number 6412, which is the child tax credit or letter 6475 and that's the one for the 1400 rebate recovery credit," Spencer said. "So if you bring those two letters along to your appointment that does help."

Another area Spencer highlights is the Earned Income Tax Credit.

"Now, there's no upper age limit," she said. "And it's based on either this year's earned income credit or the 2019 earned income credit. In other words, the year before that pandemic hit."

She says a bigger daycare credit can help many families.

"They finally upped it a little bit for inflation," Spencer said. "Well, quite a bit, $8,000 per child and $16,000 for two or more children. What we need, the name, address and social security number of the daycare providers and how much you paid them."

And she says to keep a watch on charitable contributions.

"Last year you were allowed $300 per tax payer of cash contributions and that would mean cash or check or credit card," Spencer said. "You'd have to get a receipt it was 300 per person and now it's 600 this year."

And if you go into get your taxes done some of the main items Spencer recommends having include your W2 form, 2019 tax return because the 2020 return will not be used for some items and proof of children living with you.

And it's - "what's this time of year like for you?"

"Busy," she said. "Busy. It's kind of like calving season for rancher or haying season for a farmer."