April Newsletter

Tax Season Updates & Reminders

Unemployment Tax Waiver: We have received the necessary guidance to begin filing returns that are impacted by the unemployment tax waiver outlined in the American Rescue Plan Act. Our software has updated to account for most of the changes. We are currently working our way through the impacted returns. Amended Returns: The IRS announced that they will automatically recalculate and refund money to taxpayers who filed their returns prior to the finalization of the unemployment tax waiver. It is anticipated that the IRS will begin issuing these automatic refunds in May. However, some taxpayers may still need to file an amended return to maximize their refund. Therefore, we are not filing amended returns for clients impacted by the unemployment tax waiver at this time. We are working to identify which of our clients need an amended return to claim the full refund. Deadlines: The filing deadline was extended to May 17th, 2021 for federal and state tax returns. We are working diligently towards this deadline and will be in contact with you when your returns are finalized. You have until April 16th to provide us with your 2020 tax documentation.

Recovery Rebate Credit

The Recovery Rebate Credit allows taxpayers to claim their first or second round of stimulus payments if they didn't receive them last year. It also allows taxpayers to claim additional amounts that they were entitled to but did not receive. In a news release, the IRS issued the following statement: “When the IRS processes a 2020 tax return claiming the credit, the IRS determines the eligibility and amount of the taxpayer’s credit based on the 2020 tax return information and the amounts of any EIP previously issued. If a taxpayer is eligible, it will be reduced by the amount of any EIPs already issued to them.” Therefore, if the IRS determines that the amount claimed on a taxpayer's 2020 tax return is incorrect, they will adjust the credit as necessary. The Internal Revenue Service is mailing letters to taxpayers explaining why they may not be getting as much of a Recovery Rebate Credit as they were expecting on their taxes.

How is the Third Economic Impact Payment Different?

The third Economic Impact Payment will be larger for most eligible people. Eligible individuals who filed a joint tax return will receive up to $2,800, and all other eligible individuals will receive up to $1,400. Those with qualifying dependents on their tax return will receive up to $1,400 per qualifying dependent.   Unlike the first two payments, the third payment is not restricted to children under 17. Eligible families will get a payment for all qualifying dependents claimed on their return. This may include older relatives like college students, adults with disabilities, parents and grandparents.   Income phase-out amounts are different for the third payments. Taxpayers will not receive a third payment if their Adjusted Gross Income exceeds: $160,000, if married and filing a joint return or if filing as a qualifying widow or widower. $120,000, if filing as head of household. $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns

Impersonation Email Scam

There is an ongoing IRS-impersonation scam that appears to target educational institutions, including students and staff who have .edu email addresses. The suspect emails display the IRS logo and uses various subject lines, such as Tax Refund Payment or Recalculation of your tax refund payment. It asks people to click a link and submit a form to claim their refund. The IRS recommends that people who believe they are a target of this scam do the following: Report the scam to [email protected] Get an Identity Protection PIN Report identity theft, if applicable It is important that you do not enter any of your personal information into a link that you've received via email.

Where's My Refund?

If you would like to track the status of your 2020 refund, you can refer to the IRS Where's My Refund resource. Please be aware that refunds may take longer than expected due to delays at the IRS.

Your Economic Impact Payments

If you are wondering about the status of your stimulus payment, you can use the IRS Get My Payment tool for further information.

Office Hours

Through April 16th Monday through Thursday 9 a.m. to 6 p.m. Friday 9 a.m. to 5 p.m.