WHAT'S NEW?

IRS will begin accepting 2021 tax returns on January 24, 2022.  We can prepare your return before that date and have it ready when IRS opens their doors. 

 

Personal Tax returns will be due Monday, April 18, 2022.

Secure Portals – Although we made this available last year for the first time, many of you may choose to take advantage of this secure way to transfer information with us, in order to protect your personal and financial information.  This method of exchanging documents can be used to make your tax preparation entirely safe, paperless and contactless.  


ID.me – Create an IRS account on irs.gov to view your information such as: transcripts, estimated tax payments, balance due, refund status, and how much you received in Advance Child Tax Credit payments and stimulus payments.  IRS has contracted to use the 3rd party company of ID.me to establish a secure login process that will verify your identity and reduce fraud.


Advance Child Tax Payments – In July 2021, IRS began sending out advance payments for child tax credits to millions of taxpayers with children.  The 2021 tax return will reconcile those payments with the amount of credit applicable on your tax return.  Some will get more credit, others may possibly have to repay what they have already received.  It is vitally important to file a 2021 tax return to reconcile this credit.  You must report the exact amount you received and the number of children you received the advance payment for.  In January 2022 IRS will be sending out a letter #6419 with this information to each taxpayer (spouse).  We will need all IRS letters.  This information is also available on ID.me as described above.


Daycare Credit - For 2021 only, taxpayers can claim up to $8000 paid in daycare per child, for up to 2 children.  This can result in a refundable credit of up to 50% or $4000 (x2 children) equaling $$$ in your pocket.  This credit is calculated and phased out based upon your income.


3rd Stimulus Payment (EIP3) – The last stimulus payment received around April 2021, will be reconciled on this 2021 tax return.  It is not taxable, but reportable to make sure you received what you are entitled to.  If you were shorted, you could receive the difference refunded to you, or use to lower your balance due.  IRS will be sending letter #6475 containing the amount you received.


Charitable Contributions – Even if you do not itemize, you may now deduct up to $300 if not married, and $600 if married for cash/check only donations. Items/goods donated to charitable organizations do not qualify.

Unemployment – All unemployment received in 2021 will be taxable.  If you did not claim the $10,200 exclusion last year (for 2020 only), IRS recalculated the difference and sent out refunds.  Don't forget that your Missouri may need to be amended as well.


What’s NOT new is that we LOVE our clients and being able to serve you.