With the 2021 Income Tax filing season quickly approaching, now it the time to be aware of Major changes for 2021. These many major tax code changes will result in longer preparation times and require our tax preparers to spend more time being updated on the new tax codes. But be prepared, as politicians are making noise in preparation for another fun-filled year of late-breaking changes to the tax codes. Here is what we know now.
There are other changes to the federal and state tax codes that might affect your taxes this year. According to the IRS, in 2017 up to 1.4 million individuals had $1.35 Billion in Unclaimed refunds or unclaimed tax credits turned over to the US Treasury after the three year filing due date. Make sure you get all of your Credits, have American Tax Service prepare your taxes.
- The IRS will be mailing out Important Letters in early January 2021
- Tax filing deadline is Monday April 18th, 2022
- Child Tax Credits have been Dramatically Enhanced
- Earned Income Credits has also been Expanded
- Child and Dependent Care has been Dramatically Enhanced
- Changes to Education Credits
- Mortgage Insurance Premiums and Medical Related Expense
- The Third ($1,400.00 Economic Impact Payment received back in March-May 2021, was just an Advance Payment for the 2021 Recovery Rebate Credit that will be available when you complete your 2021 Tax Return. This Economic Impact Payment was based on your 2020 or 2019 tax return. While you are not required to report the Third Economic Impact Payment on your 2021 tax return, you should if:
- (a) You weren’t qualified to receive it on your 2019/2020 tax return.
- (b) Did not receive the full amount of the Third Economic Impact Payment
- (c) You had changes in your life (change in income, change in number of dependents you claim).
There are other changes to the federal and state tax codes that might affect your taxes this year. According to the IRS, in 2017 up to 1.4 million individuals had $1.35 Billion in Unclaimed refunds or unclaimed tax credits turned over to the US Treasury after the three year filing due date. Make sure you get all of your Credits, have American Tax Service prepare your taxes.