Tax Season is Here: What You Need to Know to File Successfully

Rochester, Minnesota – As tax season approaches, many individuals find themselves uncertain about how to navigate the process, especially with changing tax laws. Regardless of personal preference, taxes are a certainty in life. Rochester resident Rod Langevin expresses concern about a potentially larger tax liability this year, leading him to consider seeking professional assistance. So, whether undertaking tax filing independently or with the help of a professional, understanding key aspects is crucial. This includes gathering important documents such as W-2s and 1099s, as well as having a copy of the previous year’s tax return handy for reference.

Although the overall process remains consistent, a few changes are to be expected this year. Notably, the Minnesota rebate checks, or “Walz checks,” will be subject to federal taxes, but not state taxes – a disappointing revelation for some Minnesotans. Additionally, families with children can benefit from the Child Tax Credit, which offers $1,750 per qualifying child for low-income households. Furthermore, the tax law has been amended to simplify the nonrefundable portion of the credit, making it easier for individuals with lower incomes to receive the full benefit. This change is expected to have a positive impact on reducing childhood poverty.

Amidst tax season, it is essential to be aware of the potential risks associated with identity theft. The IRS provides eligible taxpayers with an IP PIN (Identity Protection Personal Identification Number) to safeguard against misuse of personal information during the filing process. It is recommended to proactively acquire an IRS IP PIN before facing any identity compromises.

In Minnesota, there is another notable change pertaining to retirees. Those who meet the qualifications will no longer have to pay state taxes on their social security income. For more detailed information on these updates and other tax-related matters, individuals can visit the Minnesota Department of Revenue’s website.

As individuals prepare to tackle their tax obligations, staying informed about these changes can ease the process and potentially maximize benefits. Being proactive and well-prepared can contribute to a smoother tax filing experience.