Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Few changes for tax season

By John Miller, 01/7/22 3:50 PM

PRESCOTT – Tax time is just around the corner.

For the most part, there aren’t a lot of changes from last year, especially for farmers and businesses. For businesses, in the past, 50 percent of meals could be deducted, now 100 percent of business meals can be.

Carl Dalrymple, owner of Dalrymple-Crain Accounting, said around 6 million tax returns from 2019 have yet to be processed, and only about 9 percent of calls to the Internal Revenue Service get through to be answered.

Last year those who didn’t itemize their taxes got a $300 credit, this year that amount has doubled to $600. The $1,400 people received in stimulus money has to be reported on taxes, but those who didn’t receive these funds don’t have to make the report.Additionally, anyone who received more incentive money than promised don’t have to report the added income.

The early dependent credit from 2020 remains, but anyone who lost dependents in 2021 will have to pay the credit received back.

Last year up to $10,200 in unemployment pay was exempt from taxes. This year, Dalrymple said, all unemployment compensation has to be included on taxes.. Additionally, the early withdrawal penalty people with Individual Retirement Accounts (IRA) was waived last year, but is back and must be reported this year.

A major change in taxes, Dalrymple said, involves cryptocurrency. Anyone who has cryptocurrency and uses it must report every single transaction made with it. Each transaction has to be listed separately on the tax return. Dalrymple said it’s being treated like the sale of stock by the IRS, and there will be penalties for non-disclosure on the amount spent.

For the most part, he said, everything is the same as last year, though dependent care credit is now refundable whereas it wasn’t in the past.

What will be a welcome surprise for most, he continued, is state income tax is going down for everyone.