CORPUS CHRISTI, Texas — Following another year of fighting through the pandemic, there are some tax laws to be aware of as you begin thinking about preparing your tax return.
Some of the programs designed to provide relief to those whose income has been directly impacted by the Coronavirus, could affect your tax return.
Take, for instance, the child tax credit payments many opted to receive in advance last year -- six monthly payments of up to $300 per child.
According to Bill Clark of TaxPro in Corpus Christi, it could mean that you could see a smaller refund.
"Obviously, if I received those funds in advance, I'm not going to get them on my refund," Clark said. "I can get them one way or the other, not both ways."
Clark also said that if your circumstances have changed – say your child now lives with another parent, or you make more money than you did before then you may have received more than you qualify for.
That's something you'll have to repay to the IRS.
Unemployment Benefits is another area that may hold a surprise for anyone who lost a job.
If you collected unemployment in 2021, you will owe federal taxes. That's something that was suspended for unemployment pay taken in 2020.
Either way, Clark says it is best to file early, in case last year's slow response from the IRS is duplicated this year.
You may recall that refunds were often delayed, and it became extremely difficult to speak with someone live when trying to reach the IRS for help.
"That is still the case. I spoke with a client yesterday who was going through that and they said they had been on the phone for an hour-and-a-half and got a disconnect," Clark said. "It's just what's going on. They have mostly not returned to full-time in the office yet."
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