Monday, September 26, 2022

When Can We Start Filing Taxes For 2021

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Sars Deadlines For Tax Year 2021

How To File Business Taxes For the First Time

The closing dates / SARS deadlines for Tax Season are as follows: 31 October 2021 for branch filing. 4 December 2021 for non-provisional taxpayers who use eFiling and the MobiApp. 31 January 2022 for provisional taxpayers who use eFiling.

As an innovative revenue and customs agency, SARS aims to enhance economic growth and social development, thereby supporting South Africas integration into the global economy in a way that benefits all citizens.

EMPLOYERS: Important date to remember: Employer Annual Reconciliation opens on 15 April and closes on 31 May 2021

Changes To Retirement Plan Distributions

Taxpayers should be aware that provisions in the CARES Act allowed individuals impacted by COVID-19 to take out up to $100,000 of retirement funds without incurring the customary 10% early withdrawal penalty. Further, the legislation also loosened requirements for retirees to take required minimum distributions from their retirement plans.

This penalty waiver and the relaxed rules around RMDs only applies to 2020 unless reenacted by new legislation from Congress.

Your Unique Taxpayer Reference

Before you start to fill in your Self Assessment, you will need your ten-digit unique taxpayer reference .

This allows HMRC to identify you on their systems.

This will be contained on any Self Assessment statements you have received.

If you have your National Insurance number to hand this will help HMRC identify your UTR. You can also find it on your Personal Tax Account or the HMRC app.

Read how to find a lost UTR number.

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Tax Season : When To File Tips From Irs Whats New

Tax season kicks off on Feb. 12.

STATEN ISLAND, N.Y. The 2021 tax filing season officially kicks off on Feb. 12, when the Internal Revenue Service will begin accepting and processing federal tax returns for tax year 2020.

The deadline to file a 2020 tax return and pay any tax owed is Thursday, April 15.

More than 150 million individual tax returns for the 2020 tax year are expected to be filed, with the majority of those coming before the tax deadline. Last years average tax refund was more than $2,500.

The February tax season start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits, the IRS stated.

The work is critical to ensuring systems run smoothly. If filing season opened without correct programming in place, there could be a delay in issuing refunds to taypayers, according to the IRS. These changes also ensure eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.

To speed refunds during the coronavirus pandemic, the IRS is urging taxpayers to file electronically with direct deposit as soon as they have the information they need.

Here are some tips from the IRS to making filing easier and to speed up refunds.

How You Can Start Filing Your Taxes Now

What To Expect When You File Your Taxes For 2021

The IRS will be opening the tax filing season in mid-January, but theres no need to wait until then to file your taxes.

Online tax filing allows you to be one of the first in line to get your tax refund. They will securely hold your tax return and submit it to the IRS the minute they start accepting tax returns.

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When Do I Get My Tax Refund

The answer to when will I get my tax refund depends from year to year.

Generally, the IRS has said that about 90% of refunds are issued within 21 days of when the return was received.

You can check on the status of your refund on the IRS website or at our Wheres My Refund page. Live updates will appear the same day e-file opens. Using this tool, you can easily track the progress of your return as it is processed.

What Happens If I Miss The Tax Deadline

If you received an extension and fail to file your income taxes by midnight on Oct. 15, what happens next depends on your situation. If you are owed a refund, there is no penalty for filing late, though this may be different for your state taxes. But if you owe the IRS, penalties and interest start to accrue on any remaining unpaid tax due. There’s also a $330 failure-to-file penalty under the Taxpayer First Act of 2019.

In most states, taxpayers who are granted a federal extension to file automatically receive an equivalent extension to file their state income tax return.

An important note: If you are owed a refund or you filed for an extension through Oct. 15, you were supposed to pay your taxes by May 17. If you owe money, you would have been required to estimate the amount due and pay it with your Form 4868. If you did that, you should have automatically been granted an extension.

Another caveat: If you’re serving in the military — in a combat zone or a contingency operation in support of the armed forces — you may be granted additional time to file, according to the IRS.

Bottom line? It’s best to e-file or postmark your individual tax return as early as possible. CNET’s roundup of the best tax software for 2021 features an array of packages that can help you take care of business quickly and affordably.

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Possible Refund Delays Because Of New Laws

One primary reason for the expected refund delays is a new law that forces the IRS to withhold refunds when the EITC, Earned Income Tax Credit, and ACTC, Additional Child Tax Credit, have been claimed on a persons taxes.

The 2015 act was passed to allow the IRS to combat fraud and issue correct refunds.

Once the refund has been approved and cleared for payment, the funds will be processed through the banking system, which is affected by the Presidents Day holiday. Realistically, you can expect to get your money in the last week of the month.

Whats New For Taxes In Canada 2021

Get MORE Money back!! | Filing taxes in 2021| Tax Changes and Coronavirus Affect on Taxes

The federal government regularly adds, removes or changes eligible deductions, credits and benefits that can save you money on your annual tax return. As a result, it can be tricky to know which ones you should claim from year to year. Here are the major changes to look out for when you prepare your 2020 return, so you dont miss any tax-saving opportunities.

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Providing Additional Income Support To Canadians

The Government of Canada has indicated from the outset that there would be no penalties or interest in cases where CERB needs to be repaid. However, we recognize that, for some individuals, repaying the CERB could present a significant financial hardship. For this reason, we will give Canadians more time and flexibility to repay based on their ability to pay. We will work with impacted individuals on a case-by-case basis. There is no deadline to repay COVID-19 emergency benefit payments.

If you mistakenly received COVID-19 emergency benefit payments, or your situation has changed since you first applied for one of these benefits, you can repay the CRA via My Account, online banking, or mail.

Newly announced on February 9, 2021, targeted interest relief is being provided to Canadians who received COVID-related income support benefits. Once individuals have filed their 2020 income tax and benefit return, they will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022.

Self-employed individuals who applied for the CERB and would have qualified based on their gross income will not be required to repay the benefit, provided they also met all other eligibility requirements. The same approach will apply whether the individual applied through the CRA or Service Canada.

Tax Season Is Almost Here The Irs Will Begin Collecting And Processing 2020 Tax Filings 12 February But You Can Start Getting Your Paperwork Ready Now

Tax season is just around the corner, although starting later this year the deadline to finish is once again 15 April. The Internal Revenue Service will begin accepting and processing 2020 tax year returns starting Friday, 12 February, 2021. Taxpayers can get head start by filing their tax returns immediately with tax software companies. If you were one of the millions of people who didn’t get one or both of the stimulus checks you may be able to claim the funds on your 2020 income tax statement.

The start date was delayed in order to give the IRS time to do additional programming and testing of the agencies systems following the 27 December tax law changes that provided a second round of stimulus checks and other benefits. The changes to the IRS systems will ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.

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Remember These Tax Filing Dates

Apart from the opening date of tax-filing season, the IRS also outlined important closing dates.

You have until Tuesday, April 15, to file your 2020 returns.

If you have tax software or work with a tax professional, it might be worth filing your returns now, or at least getting all the paperwork ready. These third parties are still subject to the same filing dates as everyone else, but having everything sorted will lead to a stress-free tax season.

How Do I File Taxes

IRS Delays Start of Filing Season to February 12, 2021 ...

You can file online yourself, potentially for free, or visit a tax professional.

If your adjusted gross income was less than $72,000 in 2020, you might qualify to file your federal return, and maybe your state return, at no cost through one of the IRS partners, regardless of how complicated your tax situation is. Also, most active duty military qualify for free filing. Check out your options here.

If your income exceeds $72,000, or you’re not interested in the platforms offered in partnership with the IRS, check out our list of the best tax software to use this year.

After filing out the required forms, your tax preparer will calculate whether you owe additional income tax or you’re getting a refund. If you don’t pay what you owe by May 17, penalties may apply.

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What Are The Penalties For A Late Tax

The government wants every penny it is owed and wants it in good time. As such, there are penalties for filing a late tax return if you have an unpaid tax balance.

If you are getting a refund or your tax balance is zero, there are no penalties for sending in your return after the deadline date.

The penalties for filing your income tax and benefit return late when you owe the Canada Revenue Agency are as follows:

Tax Filing Season Begins Feb 12 Irs Outlines Steps To Speed Refunds During Pandemic

IR-2021-16, January 15, 2021

WASHINGTON The Internal Revenue Service announced that the nation’s tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.

This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.

To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12.

Last year’s average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline.

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When Can You File For An Extension On Your Taxes

You can file an extension for filing your federal taxes up to the tax due date. Filing for an extension is free and it gives you until October 15 to file your return. Note that this only extends when your tax returns are due. If you owe taxes, your payment is still due on the federal tax filing deadline .

Get More With These Free Tax Calculators And Money

Turbo Tax Tutorial 2021 for 2020 Taxes | How to File Taxes in Canada | Canada Taxes
  • See if you qualify for a third stimulus check and how much you can expect

  • Know what dependents credits and deductions

  • Know what tax documents you’ll need upfront

  • Learn what education credits and deductions you qualify for and claim them on your tax returnGet started

The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

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The Significance Of A Delayed Tax Season Start Date

With the COVID-19 pandemic and its economic impact, any delay to the start of tax season has consequences, so its a particularly bad year to have a delay. For starters, this pushes back the processing of much needed refund checks by over 2 weeks. Why the delay? According to the IRS,

The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.

This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.

In all fairness to the IRS, they have had the dual responsibility of managing the COVID relief checks that werent passed by Congress until the end of December and preparing for the 2021 tax season at the same time, while being significantly understaffed.

So not only will normal refunds be delayed by 2+ weeks, but so will Recovery Rebate Credits to those who did not automatically receive them. This could include:

Protect Yourself From Tax

Tax ID theft occurs when someone steals your personal information to file a tax return using your personal data. Usually, the fraudulent tax filer will use your Social Security number to file your return in order to collect a refund. To protect yourself from tax ID theft, you can obtain a six-digit Identity Protection PIN from the IRS. IP PINs are known only to you and the IRS so the IRS is able to confirm your identity when you file your return. Learn more about how the IP PIN works and how to apply.

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What If I Don’t Normally Have To File Taxes But Want To Claim A Missing Stimulus Check

If you typically aren’t required to file taxes because you’re on SSI or SSDI, you’re retired, or you don’t meet the IRS’ income threshold, but you need to claim missing stimulus money, you will have to file a 2020 tax return. The good news is, you’ll likely be eligible to use the IRS’ Free File program to do so. We’ve got a guide for how nonfilers can get started filing their 2020 tax return to claim stimulus money here.

Irs Pushes Start Of 2021 Tax Season As Online Filing Opens

Everything You Need for a Successful 2021 Tax Day

– Because of the pandemic and stimulus payments, the Internal Revenue Service will not start accepting federal tax returns until Feb. 12.

The IRS announced the change, which shifts the start of tax season about a month later than usual, on Friday.

However, if you want to get a jump on things, the IRS Free File is open. The government agency works with private companies to help Americans who make $72,000 or less per year prepare and file their taxes.

Even though the service is free, a government audit found that 14 million people ended up paying for their 2019 filing. The IRS says it has tried to make it easier for people to file and find their free resources.

For those that do take advantage of Free File or use other tax software, any taxes filed online before Feb. 12 will not be given to the IRS until that date.

To speed refunds, the IRS is urging taxpayers to file electronically with direct deposit as soon as possible. The deadline for filing remains April 15.

The tax filing season will begin Feb. 12 to allow for critical programming necessary to help ensure #IRS systems run smoothly after recent tax law changes. See:

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