FAIRMONT– Tax season is upon us and businesses like Pierce Accounting in Fairmont are in the thick of it. The business, which handles a little bit of everything including tax accounting, bookkeeping, payroll and tax planning, has been in the community for 47 years with current owner Sara Pierce-Moore taking over from her father a decade ago.

Pierce-Moore said that tax season, which starts in December with year end planning, is their busiest time of the year and runs through April 15, tax day. There are currently four staff members, one of whom is seasonal, who assist people during this time.

Luckily, Pierce-Moore said there is not a ton of new things with taxes this year, however, there are a few changes which she highlighted.

On the state side, those in Minnesota can claim their child tax credit in advance, which is new this year.

“It has to be claimed on your 2024 return if you want it in advance in three payments– August, October, December,” she said.

This can come through direct deposit or check. It’s up to $1,750 per child.

Speaking more to the new advance part, Pierce-Moore said there are some pros and cons to it. One of the cons is that if people don’t remember that they got the funds in advance and they get a lesser refund it can come as a shock to the taxpayer.

People have the option of getting it in advance or not when they file their 2024 tax return.

Another change deals with the renter’s credit, which used to be claimed on the property tax return, which are issued around August.

“They changed it so if you’re a renter, it’s claimed on your regular Minnesota tax return so you get it sooner and it’s not a separate return. It’s less work,” Pierce-Moore said, adding that she’s in favor of the change.

On the federal side, Pierce-Moore said they get a lot of questions surrounding electric vehicles and energy efficiency credits.

To see if their electric vehicle qualifies for credit, people can check out fuel economy.gov/newtaxcredit.

“The seller has to file a report with the IRS and give you as a buyer proof that they filed it,” Pierce-Moore explained. “I think that’s important for people to know because if they’re buying a vehicle depending on this credit and they don’t meet the qualifications it can be a big disappointment.”

There are also price limitations that says MSRP needs to be under $80,000 for SUVs and $55,000 for all other vehicles. There are also income limitations so Pierce-Moore recommends that people look into it first.

“As a buyer you need to go into it educated,” she said.

There weren’t any changes to the energy efficient home improvement credits, which were expanded in 2023. Pierce-Moore recommends that buyers ask the sellers questions to make sure that the invoice says it’s energy efficient. The credit can be anywhere from $600 to $3,200 and it’s for residential property only.

On the business side, Pierce-Moore said that qualified business income deduction is a big thing that’s sunsetting.

“We’re encouraging people to reach out to their legislators and state representatives to keep that because it’s a 20 percent deduction on your income and it’s pretty substantial for business owners,” she said.

Pierce-Moore added that there continues to be some issues with the IRS and with mail so tax preparers encourage people to use the electronic payment system, which she said is easy to use.

“I can’t stress that enough. They keep losing mail,” she said. “It’s very stressful for a taxpayer when they lose your check.”

Filing opened on Jan. 27 and Pierce-Moore said she hasn’t heard how long it’s taking for returns to hit. She estimates that Minnesota should be within two weeks for state and noted that federal typically take a little longer.