One of the benefits of working with a professional tax preparer is that people are far less likely to miss out on new deductions and other changes they may be able to boost their refund with.
With that in mind, a recent Associated Press report offered a look at some of the new details that taxpayers can keep an eye out for as they head into the filing season.
According to the report, tax brackets have gone up by about 5 percent since 2008, potentially sparing many people from having to pay more money. Others are said to involve a broad range of matters from home purchases to educational expenses.
Other changes cited by the AP include an increase in the personal income tax exemption to $3,650, a $150 increase from 2008, along with revised limits on the earned income tax credit and a new category for families with at least three children.
"One example of is that the 'American Opportunity' Education Tax Credit has modified and expanded the Hope credit by making it available to more taxpayers. The costs of course materials now will qualify for the credit which will now allow up to $2,500 of the cost of college tuition and related expenses," said John Hewitt, CEO of Liberty Tax Service.
Taxpayers have significant changes to look out for this year in part because of last year's federal stimulus bill, which included provisions such as the popular homebuyers tax credit and credits to encourage energy efficient retrofits to one's home.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.