Earned Income Tax Credit
The EITC is a refundable credit designed to help out low- and middle-income workers .7 Depending on your income, your filing status and number of children, the credit could save you anywhere from a few hundred to a few thousand dollars on your taxes. But heres a crazy stat: About 1 out of 5 eligible taxpayers either dont claim the benefit on their taxes or dont file a tax return at all.8 Dont let that be you!
Paycheck Protection Program Loans
The CARES Act also tried to help struggling small business owners stay afloat by offering them Paycheck Protection Program loans. As long as these loans were used on certain business expensespayroll, rent or interest on mortgage payments, and utilities, to name a fewthese loans were designed to be forgiven.12
In December 2020, the IRS announced that any eligible expenses you paid with money from those PPP loans can be deducted from your taxable income.13 So thats a little bit of good news! But remember, youll have to get your loan forgiveness application approved by the Small Business Administration before youre off the hook for the amount you borrowed.
Stay On Top Of Your Important Documents And Information
One of the biggest favors a taxpayer can do themselves is to be diligent about keeping track of all the information they will need for their tax returns, Steber says. Getting your stimulus numbers, child tax credit information and unemployment benefits together in one place now will streamline your tax process down the line.
“People who waited until the last minute the past couple of years really found themselves in an information crunch,” Steber says. “It’s only going to be bigger this year because more people are impacted.”
He recommends that filers keep track of everything that happened to them this year â whether it be living through a natural disaster or going back to school or starting a new business â so that they don’t forget anything come tax season.
“Start your list of things that might change your tax return and either learn about them on your own at tax time or tell your tax pro,” he says. “You cannot give enough attention to the things that happened to you during the pandemic years.”
Tax Day is April 15, 2022.
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What To Expect From H& r Block
This year you do not need to wait for your W-2 to come in the mail. H & R Block has an Early Access program, which has more than seventy million W-2s available online right now. You can visit the site and even send your W-2 to your local H& R Block tax office free electronically.
With H & R Blocks tax refund calculator, you can estimate your tax liability amount either online or on your smartphone. You can find out how much you will receive or how much you will owe, and they even tell you the documents that you need to complete your tax return.
The fastest way to get your refund is to file electronically and receive the money via direct deposit. However, H & R Block understands that not all taxpayers have bank accounts, so they make it so these taxpayers can receive their refund on the Emerald Prepaid MasterCard. This card allows customers to control and manage their finances with the least amount of fees compared to competing prepaid cards.
Don’t Forget About Stimulus Checks
Make sure that you are providing your tax preparer with a correct number for the amount of money that you received for two stimulus payments, the first that rolled out starting last April and the second that rolled out in January.
“One of the biggest challenges this year is accurately reporting to the IRS the stimulus amounts received by taxpayers,” said Antonio Brown, a CPA in Flint and a member of the Michigan Association of CPAs.
“We need that information. If they did not receive both stimulus payments or only received one, we need to know it because the Recovery Rebate Credit is the way to receive the stimulus money that they didn’t get,” Brown said.
If a child was born or adopted into your family in 2020, you could end up with an extra stimulus payment for your new dependent, for example.
The first stimulus program offered up to an extra $500 per qualifying dependent. The second stimulus program had a $600 cap. So some parents of 2020 newborns could receive up to $1,100 extra now if they did not receive that money earlier.
The first and second Economic Impact Payments were based on information included on your most recent tax return which might have been the 2018 or 2019 returns.
“Some will want to file even if it is just to claim the credit,” Brown said.
The third stimulus program which began rolling out money in March and is ongoing offers up to $1,400 for qualifying dependents.
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What Is Tax Season
Tax season is the time period, generally between Jan. 1 and April 15 of each year, when individual taxpayers traditionally prepare financial statements and reports for the previous year and submit their tax returns. In the U.S., individuals typically must file their annual tax return by April 15 of the year following any reportable earnings. Tax returns submitted after the end of tax season are subject to late penalty fees and interest charges.
How Soon Can I File Taxes
The Internal Revenue Service has set the opening day of the 2021 filing season on Feb 12, 2021. Thats the day the IRS will begin accepting and processing 2020 tax year returns.
However, you can file your taxes early, and have your return automatically sent to the IRS the minute they begin accepting tax returns.
Which means youll get your refund back before everybody else.
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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.
Tax Season: Navigating Your 2021 Tax Returns
Sars has announced that their filing season will run from July 1 to November 23 for individual taxpayers, with taxpayers being encouraged to file online. Provisional taxpayers, including trusts, will have until January 31 2022 to file via eFiling or the MobiApp. Because of the rise in the third Covid-19 wave of infections, Sars has temporarily closed its physical branches with the intention to re-open them on August 16 2021, although this is subject to review. However, the temporary closure of its branches will not affect those who file via eFiling or through the Sars MobiApp.
Determining whether you need to submit a tax return
Not everyone who has earned an income in the current tax year needs to file a tax return. This is because, as an individual, you were only liable to pay tax if your taxable income was more than the tax thresholds, which for the March 2020 to February 2021 period were as follows:
- R83 100 for individuals younger than age 65
- R128 650 for individuals older than 65, but younger than 75
- R143 850 for individuals aged 75 and older.
Further, if all of the following criteria apply to you, you do not need to submit a tax return:
If you are unsure whether you need to submit an ITR12, its best to follow these guidelines issued by Sars, Do you need to submit a tax return?, which set out nine questions relating to your income during the year of assessment.
Preparing for your filing
Auto-assessments
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When Is The Last Day For Filing Taxes
The tax filing deadline for 2021 will most likely be April 18th.
The IRS website also has a wide variety of tools and information available that can make preparing taxes easier. In addition, the IRS recommends that you e-file and choose direct deposit as the way to receive your refund. This ensures you keep your information safe, your return is accurate, and that you receive your refund in the fastest amount of time.
Once again, the IRS has projected that nine out of ten returns will receive their refunds in less than 21 days. If you qualify, you should also take advantage of free tax options available. You can go to the IRS.gov to the filing tab to see what options may be available to you.
Sars Deadlines For Tax Year 2021
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
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Is Tax Filing Compulsory
It depends.
If you dont owe taxes to the government, you may not need to file a tax return. However, there are other reasons why you may need to file a return and they include if:
- You are expecting a tax refund. Duh! CRA wont chase you around if you dont owe them. If you want whats yours i.e. tax refund, you better go get it!
- You are eligible for and want to collect government benefits including GST/HST credits, Canada Child Benefit, GIS or Allowance benefits.
- You have an open Home Buyers Plan or Lifelong Learning Plan account through your RRSP.
- You are contributing to the Canada Pension Plan .
There are a few other scenarios where a tax return filing is required even if you do not owe taxes. If in doubt, just file there are many ways to do it for cheap, or even free.
Why Filing Early Can Make Sense
Even though many taxpayers file their tax returns on or by about April 15 every year, there is no need to put it off until the last minute. Indeed, filing an early tax return can make sense for a variety of reasons.
The IRS will begin processing tax returns for the 2020 tax year on Feb. 12, 2021. Even if you don’t file early, there are reasons to begin preparation as soon as you can.
Starting your filing process early gives you the time you need to collect the evidence needed to claim all of your deductions. You will avoid the headache of the middle of the night stress over figures and receipts. Your accountant will have a more flexible schedule and will probably be able to start working on your accounts immediately. Also, by filing early, you will short circuit would-be identity thieves.
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To Speed Refunds And Help With Their Tax Filing The Irs Urges People To Follow These Simple Steps:
- File electronically and use direct deposit for the quickest refunds.
- Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments. There is no need to call.
- For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn’t receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, including IRS Free File, will help taxpayers figure the amount.
- Remember, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer’s refund when they file in 2021.
We Have Made It Easier For You
Taxpayers, your tax matters, we continue to make it easier for you to comply. Starting July, we will be assessing a significant number of taxpayers automatically. If you accept the outcome you do not have to file a tax return at all. This enables you to view, accept or edit your proposed assessment from the comfort of your home or place of work using eFiling or SARS MobiApp.
We auto-assess based on the data we receive from employers, financial institutions, medical schemes, retirement annuity fund administrators and other 3rd party data providers. If you have not yet received your IRP5/IT3s and other tax certificates like medical certificate, retirement annuity fund certificate and other 3rd party data that are relevant in determining your tax obligations, you should immediately approach your employer or medical scheme or retirement annuity fund or other 3rd party data providers to make sure that they have complied with their submission requirements.
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How To Get A Fast Tax Refund
When tax season rolls in, you can start preparing your tax return online. Once you have it completed, you will be among the first of taxpayers who have their returns processed and their refunds issued.
Keep in mind when you file your taxes with TurboTax or H& R Block, the process is easy. They provide you with the largest refund possible by ensuring that they ask the right questions to find out which deductions and credits you qualify for.
You can also use their free tax refund calculators to see how much your tax refund will be. When you file your taxes online, there is no way that you can go wrong, and many taxpayers can file their federal tax returns free or at a discount.
Filing Your Tax Return
You should file a tax return before the April 30 deadline after the end of the tax year. Youll need your social insurance number and T4 or final payslip to file. While the deadline is April 30, you can file your tax return in February after the end of the tax year.
You may be due an income tax refund if:
- You overpaid income tax
- You overpaid in the Canadian Pension Plan
- You overpaid Employer Insurance
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A Supersize List Of Some Of The Issues People Will Face This Year
The 2021 tax season is shaping up to be much like the touchdown of a tornado, leaving some taxpayers unscathed while creating turmoil for others.
The IRS whirlwind from last year is blowing over into this years tax season, which begins today. This includes coronavirus-related staffing issues, outdated IT systems, delayed refunds and unprocessed returns. On top of this, IRS workers are scrambling to implement multiple provisions of stimulus legislation.
This storm has been brewing for a long time and has been made worse by the coronavirus pandemic, says Erin M. Collins of the independent Taxpayer Advocate Service, an organization within the IRS that helps taxpayers resolve issues with the agency.
The covid-19 pandemic has presented frustrations and challenges, Collins, the national taxpayer advocate, wrote last month in an annual report to Congress. It also has pulled back the curtain on the significant limitations the IRS faces with technology and with its workforce.
Despite the IRSs overall success in managing the 2020 filing season and accurately distributing the vast majority of the 160 million stimulus payments included in the first round of coronavirus relief, some taxpayers experienced major problems and the agency was not always fully transparent about its struggles, Collins wrote.
Whats New For Taxes In Canada 2021
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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When Is The 2021 Tax Season
When Is the 2021 Tax Season?.This year, tax season could be especially challenging.The IRS is still wrapping up processing returns from the last tax season and distributing stimulus checks.Duringor even beforetax season, you’ll want to start collecting W-2s and other tax forms.Tax season 2021 will begin in late January, though the IRS has not announced the official tax season start date yet. .The last day to file taxes, also called Tax Day, is typically April 15. .Taxes can still be filed on Tax Day, but it is always best to avoid becoming a last-minute tax filer.Unfortunately, the coronavirus crisis may extend the amount of time it takes to receive your refund.To reduce any potential refund delays, consider preparing tax returns as early as possible. .The IRS also recommends that taxpayers file their returns electronically to reduceerrors and receive refunds more quickly.
