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December 09, 2020 | Posted in:

Winter Tax Deadlines & IRS Updates

New taxpayer relief initiative

The IRS has made a number of changes designed to help struggling taxpayers impacted by COVID-19. These include an extension of the short-term payment plan option from 120 days to 180 days, easing of the information required to set up an installment agreement, and the ability to propose lower monthly
payment amounts for those with direct debit installment agreements.

Standard deductions up for tax year 2021

The standard deduction for married couples filing jointly for tax year 2021 has increased $300 from 2020 to $25,100. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,550 for 2021, up $150. For heads of households, the standard deduction will be $18,800 for tax year 2021, up $150.

Earned Income Credit to rise for tax year 2021

Qualifying taxpayers who have three or more qualifying children can take a credit of $6,728 in the 2021 tax year. That’s up from a total of $6,660 for tax year 2020.

Winter Tax Deadlines

January 15
– Due date for the fourth installment of 2020 individual estimated tax.

February 1
– Due date for employers to provide W-2 statements to employees, and also file Forms W-2 with the Social Security Administration.
– Due date for payers to provide Form 1099-NEC for nonemployee compensation to the IRS and to recipients.
– Due date for payers to provide Form 1099-MISC to recipients.
-Employers must file 2020 federal unemployment tax returns and pay any tax due.

March 1
– Payers must file Forms 1099-MISC with the IRS. (March 31, 2020 if filing electronically).
-Forms 1095 must be filed with the IRS.

March 2
– Farmers and fishermen who did not make 2020 estimated tax payments must file 2020 tax returns and pay taxes in full to avoid a penalty.
-Forms 1095-B and 1095-C must be furnished to recipients.

March 15
– Deadline to file partnership and calendar year S-Corp returns.

April 15
– Deadline to file individual, trust, and calendar-year C-Corp returns.

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