2021 Tax Changes:

 

Filing:

The IRS has announced that e-filing will begin January 24th so we can now file your tax returns.

 

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

 

IMPORTANT NEW REQUIREMENT:

For families with qualifying dependents who received the Advanced Child Tax Credit (ACTC), please bring IRS Letter 6419 to your appointment.  Your tax return must be reconciled to ensure IRS tax filing matching and avoiding refund delays and future notices.  If Letter 6419 is not received or no longer available, then check your bank records to confirm the deposits.  You may 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

 

Also, questions have come up as regards shared custody. Please see the link below for answers to these questions:

 

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-l-commonly-asked-shared-custody-questions

 

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 1099-NECs (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 and interest.

If you cannot pay all of the tax due to the IRS, they may be able to assist you with arranging payments and we can help you implement the installment agreement request.

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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E-mail: bandhtaxservice@gmail.com

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