WASHINGTON—Credit unions and CUSOs that provide tax assistance to members—along with members themselves—will want to keep several tax changes in mind as tax season kicks off.
Congress expanded several tax benefits this year, including the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Emergency Rental Assistance (ERA), as a result of COVID-19, which may lead to increased refunds for some taxpayers, NAFCU noted.
Meanwhile, the CFPB has just released its guide to filing taxes, which covers the increased benefits as well as how individuals can get ready to file. The guide offers instructions on the quickest and safest way to receive tax refunds through direct deposit and provides advice on planning for tax season yearly, according to the Bureau.
Focus on Digital Assets
Also worthy of attention: IRS Commissioner Chuck Rettig said his agency will be “very focused” on taxpayers’ digital assets this tax filing season, in accordance with President Joe Biden’s expected release of the Administration’s digital asset strategy. The White House earlier announced its plan to release a government-wide strategy, outlining digital assets’ opportunities and risks, in the form of an executive order.
Rettig stressed the importance of cryptocurrency regulation, citing underreported crypto income as a big issue, saying the IRS finds ways “to make sure that people aren’t able to hide assets that aren’t allowing us to collect tax revenue, and that’s exactly what we’re doing, working on rules that will allow us to do that and carefully working with the IRS to ensure that we’re in a place where we can capture the revenues that people owe.”