Articles

March 10, 2022 | Posted in:

Order Out of Chaos: Prepare for this Year’s Tax Filing Season

New legislation and backlogs at the IRS will make this tax return season more turbulent than most.

Here are several tips to help you prepare:

Economic Impact Payments

Congress handed out three rounds of stimulus money in 2020 and 2021. Review your records and be clear about any 2021 payments so your tax return reflects this.

Small Business Relief Loans

If you received a Paycheck Protection Program (PPP) loan, payments are deferred for 10 months after the covered period end date. You can apply for forgiveness up until the loan maturity date. For optimal tax protection, gather your records including what you received and when.

Child Tax Credit

Some parents received advance Child Tax Credit payments during the second half of 2021. Be sure to accurately identify these. The payments will be reconciled on your tax return to ensure you receive your full credit amount.

Unemployment Benefits

In 2020, the first $10,200 of unemployment benefits was tax free for many, a provision that became law after some already filed their returns. If this pertains to you and you haven’t received a refund of a tax overpayment, you might need to file an amended 2020 return.

Dependent Care Credit

The credit for qualified dependent care expenses is higher in 2021 than 2020. The maximum for one child under 13 is $4,000 and $8,000 for two or more children.

 

Our tax and advisory team is ready and able to partner with you this Spring. Contact Alloy Silverstein for guidance on your specific situation.

Author:

Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.

About Us →    Our Solutions →    Follow @AlloyCPAs on Twitter →    

JB Financial Associates is now Alloy Silverstein.
This is default text for notification bar