General Information: Monday January 24, 2022 the IRS began accepting 2021 individual tax returns. It is very important that taxpayers gather all their information before preparing and filing their 2021 tax returns. The IRS encourages taxpayers to make sure their information is complete and accurate before filing. This helps ensure that their return is processed and refunds are sent out timely. Having errors in information could significantly delay the processing of an individual’s return. Accuracy of information is important for all tax payers, but especially important for taxpayers who received Economic Impact Payments and/or Advanced Child Tax Credit Payments. The IRS mailed out letters regarding all of this information. However if you do not receive these letters, you are able to make an account on IRS.gov and access any correspondence from the IRS.
Tax Due Date: April 18, 2022
Creating an IRS.gov Account: Visit IRS.gov and click create an account, follow the prompts to verify your identity and create a log in. You can also visit the following website for the IRS publication an creating an account and what you can do with your account: https://www.irs.gov/pub/irs-pdf/p5507.pdf
Changes from prior years:
- Child Tax Credit: The child tax credit increased to $3,600 for children 6 and under and $3,000 for children age 7-17.
- Advanced Child Tax Payments: Some tax payers were eligible to receive advanced payments for the latter half of 2021, it is important to know these exact amounts received when filing your taxes.
- Cash Charitable Contributions: For those who do not itemize, you are still able to get a deduction for charity contributions up to $300 for a single tax filer and $600 for married filing joint
- Standard Deduction increase: Single: $12,550 Married Filing Joint: $25,100 head of Household: $18,800
- Earned income tax credit increased
- Unemployment Tax Break was NOT Renewed: On 2020 returns, $10,200 of unemployment was non-taxable, that is no longer the case in 2021. All Unemployment benefits will be taxed.
- 3rd Economic Impact Payments: This was the final stimulus payment, $1,400 per individual before possible phase out.
Our clients: Remember to get your information turned into our office as soon as you have everything. Our office is open Monday-Friday 8am-5pm and Saturdays thru April 15th 8am-12pm. If you are needing an appointment, be sure to call and get on one of our accountant’s schedules soon. It is important that you fill out the “Required Information” sheet that was sent with your organizer. If you have misplaced this form, we have them available in our office at drop off or one can be emailed to you. This sheet is to help ensure we are capturing the important information that will help increase the accuracy of your return and help eliminate the possibility of the IRS delaying processing.
New Clients: Still need an accountant for 2021? Look no further, we have you covered. Give our office a call or stop in to discuss becoming a client.
- Phone: (260) 432-9996
- Email: [email protected]
- Fax: (260) 459-3900
Happy Tax Filing!
Sipe CPA Firm LLC