2021 Tax Changes:

 

Filing:

The IRS has not yet announced when e-filing will begin. Last year it was not until February 12th. We encourage you to come in before that date and we will be able to prepare your taxes. We just cannot e-file until the IRS allows.

 

Other Expectations:

The standard deduction will be slightly adjusted for inflation each year.


For business mileage in 2021, the rate was decreased slightly to 56 cents. Make sure you have a proper detailed log to help audit proof your return!

 

Taxpayers may be able to claim the Recovery Rebate Credit if they met the eligibility criteria in 2021 and:

  • They didn't receive an Economic Impact Payment(Stimulus Money) this year, or
  • Their Economic Impact Payment was less than $1,400 for each qualifying person in the household. There are age and income qualifications. Check the IRS.GOV website for more information.

Information needed when you come to do your taxes:

We will need the amount of Economic Impact Payments made to you and members of your family at the time we do your taxes. For help in determining the amount you were given, please see this page on the IRS website: 

 

https://www.irs.gov/coronavirus/get-my-payment

 

in addition to the Ecomomic Impact Payments issued, IRS gave people who were qualified some of their Child Tax Credit money for 2021 in advance. When you come to do your taxes, we will need the amount of Advanced Child tax credit payments paid to you during the year 2021. If you don't know the amount, please check on the new portal on IRS.GOV to obtain the amounts by going to this page on the IRS website:

 

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

 

All taxpayers are now eligible for Identity Protection PINs:

The Internal Revenue Service has expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities.For more information, go to the IRS.GOV website at this link: 

https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

 

Businesses:

Businesses have a deadline of January 31st to issue/file 2021 W-2s, 1099-MISCs, and the new 1099-NEC (Non-Employee Compensation). B&H can help you issue these forms for a nominal fee. Call us or come in to get these done.

 

Partnerships and S Corps Tax Filings are due March 15th.

 

General Operating Notes:

 

Electronic filing is required for all returns we perform. We will be accepting credit cards and debit cards in addition to checks and cash. There is no longer an additional fee for debit/credit card transactions.

 

You may not have filed your federal income tax return for this year or previous years. Regardless of the reason for not filing, you should file as soon as possible. We are here to assist you.

If your return was not filed by the due date (including extensions), you may be subject to some penalties.

If you cannot pay all of the tax due to the IRS, they may be able to assist you with arranging payments.

There is no penalty for failure to file if you are due a refund. But, if you want to file a return or otherwise claim a refund, you risk losing a refund altogether. A return claiming a refund would have to be filed within 3 years of its due date for a refund to be allowed.

What to Bring to Tax Appointment

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Phone:

210-658-2587

E-mail: bandhtaxservice@gmail.com

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