MINNEAPOLIS — WELLNESS CHECK.
We're just over a month away from tax day in the United States.
Because some of us might start to feel the crunch this time of year, KARE 11 borrowed some guidance from the Internal Revenue Service, Minnesota Department of Revenue and local tax expert Steven E. Warren, CPA, MBT, with SDK CPAs, about maximizing your 2024 return.
CLEAN VEHICLE CREDIT
Those who qualify for a clean vehicle credit could receive a generous tax break. The Internal Revenue Service determines your eligibility based on the following factors:
- Planning to buy a new clean vehicle
- Looking to claim a credit for a new clean vehicle you already bought
- Planning to buy or already bought a used clean vehicle
- Buying a vehicle for business use
For more information about clean vehicle credits, click here.
CHILD TAX CREDIT
The maximum credit for families in Minnesota is $1,750 per child under 18, with no limit to the number of children eligible for the tax credit.
Some eligibility requirements include:
- Being a full-year or part-year resident of the state in 2023
- You are not a dependent of another person
- Your 2023 income was under $35,000 for married filing jointly status; under $29,500 for others
For more about Minnesota's Child Tax Credit and to see if your family qualifies, visit the Minnesota Department of Revenue's website.
OUT-OF-POCKET CHARITABLE CONTRIBUTIONS & MILEAGE
According to Warren, charitable transactions and out-of-pocket expenses toward charitable organizations are deductible — but often overlooked. Additionally, if you drive for a charity, you could be eligible to receive the 2023-2024 rate of 14 cents per mile.
UNAMORTIZED POINT DEDUCTION
Unamortized points — payments to buy down your mortgage interest rate — can also be deducted on your taxes, but only if the loan's proceeds were used to buy or improve your home.
You can visit the Internal Revenue Service's website for more information about what's eligible and how to include the deductions in this year's filing.
DIVIDEND & CAPITAL GAIN REINVESTMENTS
Experts say to consider any dividend and capital gain reinvestments — i.e. stocks — when calculating the gain or loss on the sale of a security. Reinvestments become a part of your basis and reduce the taxable gain, or increase the loss, to give you a better tax result.
For more information and to acquire the proper forms, click here.
PROPER SUPPORT FOR DEDUCTIONS
Speaking of acquiring the proper forms, Warren said to make sure you have the appropriate support for your deductions in the correct forms and to collect them in a timely manner.
For example, obtaining proper support for a charitable contribution prior to filing your tax return is normally required to deduct the donation.
You can visit the IRS's website to review your options and collect any needed forms.
TAX REBATES
Include any tax rebates you received from the state in 2023 as “Other Income” on Schedule 1 of your federal income tax return. It is not taxable to Minnesota and is a subtraction on Minnesota Schedule M1M.
PROPERTY TAX REFUND
Homeowners and renters alike can be entitled to receive a property tax rebate. To qualify in Minnesota as a renter, the state's Department of Revenue offers these criteria:
- You have a valid Social Security Number or Individual Taxpayer Identification Number
- You are a Minnesota resident or spent at least 183 days in the state
- You cannot be claimed as a dependent on someone else's tax return
- You lived in and paid rent on a Minnesota building where the owner was assessed property tax or made payments in lieu of property tax
Your household income for 2023 was less than $73,270
For homeowners, the agency said:
- Have your home classified as a homestead with your county
- Pay or arrange to pay your property taxes
DON'T MISS OUT!
According to Warren, some people with lower income choose not to file because they don't owe anything. However, they may be missing out on a refundable earned income credit, working family credit, child tax credit, American opportunity credit, premium tax credit or aforementioned property tax refund.
Filing is also the only way to get a refund of income tax withholding that is not owed.
INFO FOR PAPER FILERS
While e-filing is becoming more and more common — and generally encouraged — experts warn you'll want to make sure you're following these steps:
- Sign and date the returns
- Attach to the tax returns copies of W-2s, 1099-Rs, etc. that include income tax withholding
- Copy the signed returns for your records
- Use correct postage. Consider using certified mail if additional proof of mailing is desired
APPLY FOR EXTENSION
Finally, if you can't complete your filing by April 15 this year, you can request a six-month extension. By filling out his form, you'll have until Oct. 15, 2024, to file your return, if approved. To get it, you have to estimate your tax liability and pay any amount that's already due.
The IRS allows earners to file for extensions for free online here.
WATCH MORE ON KARE 11+
Download the free KARE 11+ app for Roku, Fire TV, Apple TV and other smart TV platforms to watch more from KARE 11 anytime! The KARE 11+ app includes live streams of all of KARE 11's newscasts. You'll also find on-demand replays of newscasts; the latest from KARE 11 Investigates, Breaking the News and the Land of 10,000 Stories; exclusive programs like Verify and HeartThreads; and Minnesota sports talk from our partners at Locked On Minnesota.
- Add KARE 11+ on Roku here or by searching for KARE 11 in the Roku Channel Store.
- Add KARE 11+ on Fire TV here or by searching for KARE 11 in the Amazon App Store.
- Learn more about the KARE 11+ app for Apple TV in the Apple App Store.
- Learn more about KARE 11+ here.
Watch more local news:
Watch the latest local news from the Twin Cities and across Minnesota in our YouTube playlist: