Expert Advice from POW Financial Services
As tax season approaches, many Marylanders are feeling the pressure to file their taxes accurately and efficiently. To ease your tax anxiety, Maresa Scott from POW Financial Services shares some valuable tips to help you navigate this process with confidence.
Child Tax Credit
One of the key topics this tax season is the child tax credit. While the credit was temporarily increased during the pandemic, it has now reverted to pre-pandemic rates. For each dependent child aged 17 or younger, you can claim a nonrefundable portion of $2,000. Additionally, there’s a refundable portion of $1,800, which you’ll receive if you don’t owe the IRS and are eligible for a refund.
Maryland Student Loan Debt Tax Relief Credit
If you’re burdened with student loan debt, Maryland offers a tax credit of up to $5,000. This credit can provide significant relief, especially for those with substantial loan balances. While the application window for this credit has closed for this year, it reopens annually between July 1 and September 25. Be sure to apply early to secure the credit for the next tax season.
Avoiding Common Mistakes
Rushing through your tax return can lead to errors that may delay your refund. Take your time and double-check for any mistakes before submitting your return. Once it’s filed, any errors will require an amendment, prolonging the process and delaying your refund. Additionally, don’t hesitate to seek help if you’re unsure about tax credits or deductions. Consulting a tax professional can provide personalized advice tailored to your specific situation.
Verdict
By following these tips from POW Financial Services, you can approach tax season with confidence and ensure that you make the most of available credits and deductions. Remember to take your time, double-check your return, and seek help when needed to navigate tax season smoothly.
