It’s almost time to file your federal tax return and there are a 3 major changes for the 2021 Tax Season. The deadline to file your 2021 taxes is April 18th, 2022.
Child Tax Credit Payments
For the first time in history, the IRS Sent the child tax credit as monthly payments to qualifying families in advance of the tax filing season.
If you received monthly child tax credit payments, you must report the amount on your 2021 tax year return. You should receive Letter 6419, which will state the toal amount of the child tax credit payments you received.
The IRS recommends that you compare this amount with the total child tax credit your entitled too. You might be entitled to a remaining credit or you might have received more than you are entitled to and need to repay this amount.
2021 Recovery Rebate Tax Credit for Third Stimulus Payments
For 2021, you may qualify for the Recovery Rebate Tax Credit also known as a stimulus payment. Claim your missing third stimulus payment on your tax return if qualified and haven’t received or received only a partial payment.
You need to know the amount of your third stimulus payment you received in 2021 for yourself, spouse, or dependents to claim your Recovery Rebate Credit. You will receive Letter 6475 from the IRS in early 2022, showing the amount of your third stimulus payment.
You Don’t Have to Itemize to Claim Charitable Donations
In 2021, you can deduct up to $300 for cash donations to qualifying charities (up to $600 combined for married filers) whether you itemize or take the standard deduction.
Please remember:
- Don’t forget to file on time.
- Personal Returns (1040) are due April 18th, 2022.
- Partnerships (1065) are due March 15th, 2022
- S-Corporations (1120S) are due March 15th, 2022
- Corporation (1120) are due April 18th, 2022