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March 08, 2021 | Posted in:

Spring 2021 Tax Deadlines and IRS Updates

[Updated March 22, 2021]

Spring 2021 Tax Deadlines

March 15, 2021
– Deadline to file partnership and S-Corporation tax returns.

April 15, 2021
– Deadline to file trust and calendar-year C-Corporation returns.
– Annual gift tax returns are due.
– Deadline for making 2020 IRA contributions.
– First installment of 2021 individual estimated tax is due.

May 17, 2021
Postponed deadline to file individual returns.
– Deadline for calendar-year non-profit organizations to file annual reporting returns.

 

See our Tax Season page for additional resources to help meet these tax deadlines.


Mileage rates decrease

Mileage rates for business travel are set for 2021. The standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

  • 56 cents per mile driven for business use, down 1.5 cents from 2020
  • 16 cents per mile for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from 2020
  • 14 cents per mile driven for charitable work. This rate remains unchanged from 2020.

Employee Retention Tax Credit

The Taxpayer Certainty and Disaster Tax Relief Act of 2020 made a number of changes to employer tax credits previously made available under the CARES Act. Among them, the Employee Retention Credit (ERC) was extended for six months and modified in a number of ways. This is for employers who kept employees on payroll despite challenges posed by COVID-19. For all of the details, visit the Alloy Silverstein webinar recording at www.alloysilverstein.com/events.

Social Security changes for 2021

New benefits took effect on January 1. For recipients of Social Security, these include a 1.3% cost of living increase. If you’re an individual who began collecting before full retirement age, you can now earn $18,960 before benefits are reduced.

PPP new eligible expenses

The second draw of the PPP program has expanded forgivable expenses, originally limited to payroll, rent, mortgage interest and utilities. New eligible expenses include PPE and facility modifications; unreimbursed property damage costs from 2020 looting; essential supplier expenses; and payments for certain business software or cloud computing services. Visit our COVID-19 Resource Center for the latest updates.

 

Contact an Alloy Silverstein CPA for guidance to your specific situation.

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