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Boyertown Area Events

What’s Going Down in Boyertown? (tax tips)

Jeff Frederick Jeff Frederick29 Mar 2022

Your weekly guide to the events and happenings in and around Boyertown, PA

What to do? Where to go? Here is your one stop list of community events, music, arts, food, business specials, and historic events for Boyertown and beyond…

As a Boyertown graduate, a real estate agent at Glocker Realty, and also a proud member of Building a Better Boyertown, I have had the joy of watching our little town grow. I enjoy having any part in helping our community to move forward. I hope this weekly blog will help shine a light on all the great things happening in and around Boyertown, PA

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Here is what’s going down during the week of 3/24/2022 – 3/30/2022

Tax Tips for 2022

Tax Day is quickly upon us. Monday, April 18th is the last day to file your tax return, request an extension, or pay taxes owed. If you haven’t already completed your 2021 taxes, there are some credits and deductions to look for when self-filing. First, let’s define deductions and credits.

What is a tax deduction?

A tax deduction lowers your taxable income and thus reduces the amount you owe. You subtract the amount of the tax deduction from your income, making your taxable income lower. The lower your taxable income, the lower your tax bill.

What is a tax credit?

A tax credit is a dollar-for-dollar reduction in your actual tax bill. A few credits are refundable, which means if you owe $250 in taxes but qualify for a $1,000 credit, you’ll get a check for the difference of $750. (Most tax credits, however, aren’t refundable.)

Now that you know the difference, let’s make sure you find all the deductions and credits that are owed to you. If you feel uncomfortable filing your own taxes, get help from an expert or have an expert file for you (find free tax assistance at the bottom of this article). If you are ready to take it on yourself, let’s delve in.  

Has your financial situation changed in 2021? There are some common life events that could influence your tax return. Did you have a baby in 2021? Did you buy a new home? Did you sell stock or cryptocurrency? All those changes can trigger important tax situations and require more research. Here is a list of items to look for when filing…

  • Child Tax Credits – Parents may be eligible for child tax credits of $3,000 to $3,600 per child for the 2021 tax year. If you qualify, you may already have received half of your available credits as advance child tax credit payments between July and December. You can claim the remaining half of your credits on your 2021 taxes using Schedule 8812. Be sure to plug in Taxpayer Identification Numbers (usually Social Security Numbers) for your children and other dependents on your return. Otherwise, the IRS will deny any dependent credits that you might be due. Be especially careful if you are divorced. Only one of you can claim your children as dependents.
  • Home Deductions – There are many items you can deduct when you own a home. Mortgage interest, property taxes, mortgage points paid, home equity loan interest, and energy-efficiency upgrades are the deductions/credits homeowners will want to take advantage of.
  • Home Office Tax Deduction – Since a lot of people over the past couple of years have transitioned into a home office workspace, the eligibility rules for home office deductions have loosened. If you use the space in your home for administrative or management activities, even if you don’t meet clients there, you are eligible. You must use the space exclusively for business though. You are entitled to write off expenses that are associated with that portion of your home, such as rent, utilities, insurance and housekeeping. The percentage of these costs that is deductible is based on the square footage of the office to the total area of the house.
  • Stimulus Payments and Recovery Rebate Credit – If you received a third stimulus payment in 2021, you should have received IRS Letter 6475 documenting it. You can also check your tax transcript for payment details. This information can help you determine whether to claim the Recovery Rebate Credit on your 2021 tax return. The Recovery Rebate Credit is for taxpayers who still have not received the full amount of stimulus due to them in the previous three rounds of stimulus payments—at this point, a rare occurrence.
  • Charity Deductions – Taxpayers who take the standard deduction instead of itemizing normally can’t claim a deduction for charity donations. For the 2021 tax year, however, you can claim up to $300 in donations ($600 for married couples filing jointly), even if you don’t itemize. Donations must be made to a qualifying charity and the deduction applies only to cash donations and non-reimbursable expenses related to volunteering.
  • Profit or Loss on Investments (Including Cryptocurrency) – Remember that capital gains taxes aren’t based on the value of your investments: They’re based on the profits you realize when you sell an investment for more than you paid. If you didn’t sell anything in 2021, you don’t owe anything. However, if you sold stocks, mutual funds, real estate, cryptocurrency, or another investment for a profit, you must report the gain (or loss) on your tax return and pay applicable capital gains taxes.
  • Earned Income Tax Credit – The American Rescue Plan tripled the maximum EITC available to $1,502, and up to $6,728, depending on your filing status  For the first – and only – time, low- and moderate-income filers who do not have qualifying children may be eligible. If you worked in 2021 and had an income of less than $57,414, you may be eligible for the refundable earned income tax credit.
  • Plan for an Extension Now if You Need One – If you can’t get your tax information together by the April 18 deadline, you can file an extension to automatically move your deadline to October 17. But don’t wait to pay the taxes you owe: The IRS expects you to make a good faith estimate if you want to avoid penalties and interest. Also be mindful of all IRS deadlines this year, including estimated tax payments for 2022.

Want free filing or free tax help?

Free File program participants are: TaxAct, Free 1040 Tax Return, FileYourTaxes.com, OnLine Taxes, 1040NOW, FreeTaxUSA, TaxSlayer, and ezTaxReturn.com.

To schedule an appointment with the volunteers at the Accounting Aid Society, see AccountingAidSociety.org or call 313-556-1920 from 9 a.m. to 4 p.m. on weekdays. 

AARP Foundation Tax-Aide helps all tax filers with a focus on taxpayers who are over 50 and have low to moderate income. There are no eligibility requirements. Visit: aarpfoundation.org/taxaide, e-mail taxaide@aarp.org, or call toll-free 888-227-7669 to find a site and make an appointment.

Go to IRS.gov for resources in multiple languages, topics in the news, and how-to guides.

Visit USA.gov to find answers to your top questions throughout the 2022 tax season. USAGov leads people to official information on everything from IRS scam prevention to small business taxes and incentives to filing for the first time.

LET’S TAKE A CLOSER LOOK at your community each week on “The Cast at Glocker”! Matt Green & Jeff Frederick interview Boyertown area businesses and discuss community events. You can catch us Wednesdays at 6pm as we livestream from the Glocker Realty & Insurance Facebook and YouTube pages. Join us live, post comments & questions, and be part of the conversation!

This week we interviewed Rachael the owner of The Peppermint Stick Candy Store in Boyertown and the president of the Boyertown Area Historical Society. See the interview below:

EVENTS LIST

THURSDAY 3/24/2022

FRIDAY 3/25/2022

SATURDAY 3/26/2022

SUNDAY 3/27/2022

MONDAY 3/28/2022

TUESDAY 3/29/2022

WEDNESDAY 3/30/2022

Do good and good will come to you.

*************

Brought to you by:

Jeff Frederick, Realtor
Glocker Realty
900 E Philadelphia Ave Boyertown, PA 19512
mobile – 610-766-2028
office – 610-367-2058
email – jeff@glocker.com

Want to know how much your HOME is WORTH? Find out here: My Home Value

Would you like your event posted? Email “EVENT” to jeff@glocker.com

jeff
Jeff Frederick
@twitter.com/JeffatGlocker
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I am a real estate agent with Glocker Realty in Boyertown, PA. I am a father of two and a husband of one. I love my family the most, but I also love the town I grew up and work in. Hence my blog posts.
Jeff knows Boyertown
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