Getting Ahead of the Game: How to Start Preparing for Tax Season 2021

Tax season is right around the corner. Get ahead of the game with this guide on how to start preparing for tax season 2021.

Filing taxes is something we all have to do, but it can be a stressful event every year if you don’t plan ahead.

In order to achieve a stress-free filing, it’s vital to be ready for tax season 2021 so you’re ahead of the game.

Read on for some tips to help you start preparing now so that you’ll be ready when filing day arrives.

Recovery Rebate Information

COVID-19 caused all kinds of new headaches, but you should find out now about how the economy is re-opening. One way the government is attempting to help citizens is through the Economic Impact Payment.

If you received a payment, keep the notice you got from the IRS (Notice 1444) with your tax records just in case. You may be eligible to claim this on your 2020 taxes as a credit if you never received the actual payment via direct deposit or in the mail.

Another reason you may be able to claim this credit is if your payment was less than $1,200 as a single filer or less than $2,400 if you were married filing jointly.  If any of these situations apply to you, be sure to claim the payment for tax season 2021.

Tax Season 2021: Charitable Donations

In the past, you could claim any charitable donations you made via your itemized deductions, but receipts were required. This year, even if you don’t itemize, you can add a charitable deduction of up to $300 for any cash contributions you made.

Be sure to note that these donations must be made to organizations on a list that is pre-approved by the IRS. If you did donate, make sure you include the amount this year in order to get the deduction.

Important Payment Deadlines

For 2021, all W-2s are due from employers by January 31, and all 1099 forms are also due by this date. The deadline to submit your tax forms and to make any payments of taxes owed is April 15, 2021.

If you file IRS Form 4868 to extend the due date of your return, it must be filed by October 15, 2021. For those who make estimate tax payments, the dude dates are April 15, June 15, September 15, and January 15. This date is for those who don’t normally have tax withheld by their employer (ie. self-employed or small business owners).

Keep these dates handy so you can be sure you’re filing or requesting extensions in time. If you don’t receive your W-2 by January 31st, it’s a good idea to check in with your employer so you can begin the filing process.

New Year, New Tax Season

From charitable donations to the Economic Impact Payments, tax season 2021 will be a little bit different. As long as you’re prepared and know the new changes, you’ll be ready to file your taxes in confidence this year.

If you need help with your taxes, it’s always a good idea to consult with a professional tax agency with any questions you have.

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