2020 YEAR/ 2021 YEAR TAX COMPARISON
We strongly advise everyone to become well acquainted with these changes.
We strongly advise everyone to become well acquainted with these changes.
In our opinion, the IRS ID verify process was way overdue for an upgrade. Successfully verifying their old platform was an act of GOD. Rumor is… this process is much easier… probably because they outsourced it.
Hope this is helpful!
To help taxpayers, the IRS annouced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.
Here is quick summary on the press release:
Taxpayer who filed prior to change to the handing of the unemployment benefits
CLICK HERE to read the full press release.
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
This one-month delay is not as much extra time as the IRS offered last year when the filing deadline was pushed to July 15. But it should make it easier for the taxpayer to get a handle on their finances – as well as tax changes that took effect just this month with the signing of the American Rescue Plan. The new law made the first $10,200 of unemployment benefits received in 2020 tax-free for people with an income of less than $150,000, a significant change for many whose jobs were affected by the pandemic.
Please CLICK HERE to read the full article on IRS.gov
IRS announces the start of e-File for the 2021 Tax Season will be Friday, February 12th.
Today, the IRS announced the e-file start date for the 2021 tax season, which came as a surprise to many of us since normally IRS starts accepting tax returns no later than the last week of January. However, this year, the IRS will need more time to prepare after the COVID relief act that took effect in late December. And yes, the tax filing deadline is still April 15. “If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers,” the IRS said in its announcement. Click the link below to read the full news release.
January 29. Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
February 12. IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins.
February 22. Projected date for the IRS.gov Where’s My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns.
First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.
April 15. Deadline for filing 2020 tax returns.
October 15. Deadline to file for those requesting an extension on their 2020 tax returns
Click the button below to read the official IRS news release regarding the start of e-File for the 2021 Tax Season
CLICK HERE to read to full IRS news release.