Get Ready for Taxes: What’s new and what to consider when filing in 2021 |
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WASHINGTON — The Internal Revenue Service today encouraged taxpayers to take necessary actions in the final weeks of the year to help file federal tax returns timely and accurately in 2021.
This is the third in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to make tax filing easier in 2021.
This year, there are some key items to consider involving credits, deductions and refunds:
- they didn't receive an Economic Impact Payment, or
- their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018), plus $500 for each qualifying child they had in 2020.
If a taxpayer didn't receive the full amount of the Economic Impact Payment for which they were eligible, they may be able to claim the Recovery Rebate Credit when they file in 2021. Individuals do not need to complete information about the Recovery Rebate Credit on tax year 2020 Form 1040 or 1040-SR when filing in 2021, unless eligible to claim an additional credit amount.
Interest on refunds taxable. Taxpayers who received a federal tax refund in 2020 may have been paid interest. Refund interest payments are taxable and must be reported on federal income tax returns. In January 2021, the IRS will send Form 1099-INT to anyone who received interest totaling $10 or more.
Refunds. The IRS always cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and processing may take longer. For example, the IRS, along with its partners in the tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud. Just like last year, refunds for tax returns claiming the Earned Income Tax Credit or Additional Child Tax Credit, cannot be issued before mid-February. This applies to the entire refund, even the portion not associated with these credits.
The IRS reminds taxpayers that the fastest and safest way to receive a refund is to combine direct deposit with electronic filing including the IRS Free File program. Taxpayers can track their refund using the Where's My Refund? tool.
*Click here to read this article and others from the IRS website.
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Tax Season 2021:
What You Need to Know
From: daveramsey.com
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If you’re like us, you probably never want to think about 2020 again. But there is one lingering ghost from last year that you need to get rid of before you can truly move on for good—and that’s your 2020 taxes.
Thanks to the coronavirus (among other things), a lot has changed for the 2021 tax season. That’s why you need to start thinking about your tax situation now while you still have time on your side. We want you to be prepared to tackle your taxes before they tackle you. And to do that, we’re going to dig into what’s new for this tax season and what’s staying the same.
First, here are the main things you need to know right off the bat for the 2021 tax season:
Tax Day is Thursday, April 15, 2021. You must file your 2020 tax returns by this date!
The standard deduction for 2020 increased to $12,400 for single filers and $24,800 for married couples filing jointly.
Income tax brackets increased in 2020 to account for inflation.
But that’s just scratching the surface! Let’s break down the details so you can file your taxes with confidence this year.
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This March, we will be hosting a virtual client appreciation event to honor our Lifetime Peace of Mind Program members. More information and invitations will be sent soon.
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We are pleased to announce that Steven W. Ledbetter and the Ledbetter Law Group were awarded the 2020 AVVO Clients' Choice Award.
Congratulations team!
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We would like to extend the happiest of birthdays to wishes to our Estate Planning Paralegal, Andrea Rottenberk who will be celebrating her big day on January 21st.
Happy Birthday, Andrea!
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We also send warm wishes to Michelle Richey, our Real Estate Closer/Licensed Title Insurance Agent who will celebrate her birthday on January 26th.
Happy Birthday, Michelle!
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The votes are in and we are waiting for the final tally for the Best of Venice 2020 results!
We are both honored and humbled to be nominated as the Best Attorney and the Best Estate Planning Attorney in the area.
Stay tuned for the official results.
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Each Saturday of the month visit the Venice Farmer's Market
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At Ledbetter Law Group, we go above and beyond to create relationships to last a lifetime. We are here for you, your family, and your loved ones.
Trust
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Excellence
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Responsive Service
Provide efficient and timely service to our clients, firm, team, profession, and community
Work Ethic & Professionalism
Serve our clients in a passionate, productive and positive manner with the highest levels of professionalism
Mutual Respect
and Dignity
Support our clients, coworkers, and families in times of need with compassion, empathy, mutual respect and dignity
Conscientious
and Reliable
Dedication to do the right thing for our clients, our professional team and community
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Please contact our office today to schedule a consultation and meet with a member of our team to find out how we can assist you. |
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