⚠ ATTENTION SIX FIGURE EARNERS, REAL ESTATE INVESTORS AND SMALL BUSINESS OWNERS Looking To Wipe Out Tax Obligations To ZERO OUT your tax liability For Legal Tax Deductions

Covid Info And Expired Credits

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To ensure the safety of every client we have added some additional filing options for you. Choose to come into the office, virtual filing from home or schedule a Zoom meeting. It’s up to you!

COVID Tax Tips for 2020 and 2021 tax filings ONLY!!
No longer available for 2022 filings!

When you get ready to file your federal tax return there are new things to consider when it comes to which credits to claim and what deductions to take. These things can affect the size of any refund. Here are some new key things to consider when filing your 2021 tax return.

Advanced Child Tax Credit:

Taxpayers who received ACTC payments in 2021 must claim the amount received when filing their taxes. The IRS will delay any returns that do not have the correct amount claimed in this area. All amounts received will be deduct\ed from the total credit claimed on the 2021 tax return filing.

W4 2021 $1400.00 Recovery rebate credit

Taxpayers may be able to claim the recovery rebate credit if they met the eligibility requirements in 2021 and one of the following applies to them: They didn’t receive an Economic Impact Payment in 2021. They were pregnant and did not receive the payment for the new child born in 2021. People who received a federal tax refund in 2021 may have been paid interest. Interest payments are taxable and must be reported on 2021 federal income tax returns. In January 2022, the IRS will send a Form 1099-INT

New charitable deduction allowance

New this year, taxpayers who don’t itemize deductions can take a charitable deduction of up to $300 for single filers and $600 for married filing joint filers for cash contributions made in 2021 to qualifying organizations.

Other refund-related reminders

Taxpayers shouldn’t rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some tax returns may require additional review and processing may take longer. Refunds for taxpayers claiming the earned income tax credit or additional child tax credit can’t be issued before mid-February. This applies to the entire refund, not just the portion associated with this credit. The fastest and most secure way to receive a refund is to combine direct deposit with electronic filing, including the IRS Free File program. Taxpayers can track the status of their refund using the Where’s My Refund? tool.

More you should know about your 2021 filing;
Tax Tips For The Unemployed During The COVID-19 Pandemic

  • Unemployment compensation is taxable. To be clear, this includes your state benefits and any additional payment from the federal government. The total amount you received will be reported to you on Form 1099-G.  Do not to forget this part: we will need this form to file your tax return properly.
  • To lessen any surprises, you can choose to have federal income tax withholding from your benefits during the year.
  • If you’re worried that you might owe at tax time, consider making estimated payments during the year to avoid a potential penalty.
  • Generally, withdrawals from your pension or retirement plan are taxable unless they are transferred to a qualified plan like an IRA. As part of the CARES Act, the tax isn’t due all at once: you have three years to pay it back.
  • Food stamps and other forms of public assistance that might be available to you are generally not taxable.  Temporary programs like Supplemental Nutrition Assistance Program (SNAP), WIC (Women, Infants, and Children) and those offered through TANF (Temporary Assistance for Needy Families) can help put food on the table for your family while you continue to look for work.
  • If you’re now responsible for paying your own health care, you may be able to deduct the cost of those insurance premiums, including COBRA costs, as medical expenses. You include the costs of those premiums along with your other eligible medical expenses on Schedule A if you itemize. Keep in mind that those expenses are only deductible to the extent that they exceed 10% of your adjusted gross income.
  • Don’t overlook available tax credits that you didn’t qualify for when you were working. Even though your income may have exceeded the threshold for the Earned Income Tax Credit (EITC or EIC) in prior years, you may now be eligible for the credit. Assuming you meet the earned income restrictions and other criteria, you may qualify for the EITC – and you don’t have to have kids to collect.
  • If you’re relying on the kindness of strangers – or friends and family – to get through this tough time, those gifts probably aren’t taxable to you. As a rule, the person making the gift – not the recipient – is responsible for any applicable federal gift taxes. For federal income taxes, the mere receipt of the gift is not a taxable event.
  • If you are uncertain how the Advance Child Tax credit will work for your taxes, please consult a professional.  All stimulus payments require you to report the amounts received on your 2021 tax returns.
If all of this seems a bit overwhelming, remember we are here to help. Don’t be afraid to ask us questions about benefits, deductions, and credits that can help reduce your tax burden.

Covid-19 Compliant Filing Options

Zoom Meeting

Barriers and Shields

Virtual Filing