(KNSI) – Death and taxes are two certainties in life, and now that the holiday season is over, it’s time to start getting those documents together to file.
Landwehr Tax and Accounting Business Manager Ashley Kerzman says families with kids should expect a smaller refund in 2023. “We are now going back to pre-COVID levels of dependent care credits. Last year, it was increased a little bit due to COVID. This year, it’s going back down to $2,000 per child.”
She says the child care tax credit and the dependent health care credits are also going down 20% to pre-COVID levels. Kerzman says if you need help filing taxes contact a provider sooner rather than later.” Get all your documents in a row. Make sure you have documentation for childcare, school expenses, and your W2. All those normal documents.”
The Minnesota Department of Revenue and IRS will open to receive Individual Income Tax filings on Monday. The individual federal tax filing deadline is April 18th.
Last week, Minnesota Legislatures passed a bill that brings more of Minnesota’s tax code into conformity with the federal tax code. It amounts to over a $100 million tax cut, and it’s retroactive, so individuals and businesses who qualify can file amended returns for previous years to claim refunds.
The bill ensures that federal coronavirus, economic stimulus, and other aid passed in recent years won’t be subject to state taxes. That means a retroactive state tax break for numerous businesses that got grants to keep them afloat while they were shut down during the height of the pandemic.
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