What a frustrating year it’s been! The IRS is still trying to catch up reviewing tax returns and sending out “plus up payments” and refunds. This has been happening throughout the Summer, but if you still haven’t gotten your refund, it’s likely because your taxes are pending review by an IRS minion, just like millions of others. They have been assuring us they are working as quickly as possible (for our gov’t…), but if we could convince Congress to toss them a few billion more $$$, it would certainly help. Yeah, right!
Meanwhile, the IRS computers (think Skynet) have been busy sending out balance due letters based on what the IRS processed early this year (before March 15 when the 3rd stimulus and new tax laws were enacted). These letters are mostly incorrect, but the IRS computers won’t know that until the IRS minions get caught up. Sigh. If you receive a letter from the IRS, please contact us so we can verify the authenticity (there’s still a ton of fraud) and determine the next steps, if any.
Extensions – The due date for 2020 personal income tax returns on extension is October 15, 2021. If you still need to file, please call or email us for an appointment or forward your documents to us ASAP for TeleTaxPrep!
Now for a couple Fall 2021 Tax Tidbits!
While nothing is law yet, taxes are very likely to be going up FOR EVERYONE! Lower income people won’t be affected by income tax rate increases, but inflation (the price of everything from groceries to gas) is very real and does affect everyone. For higher income people, income tax rates and especially capital gains tax rates are likely to go up. If you’re sitting on large “paper profits”, you may want to go ahead and take the tax hit now. Talk to your finance gurus before the end of the year!
The IRS has created a webpage for Advanced Child Tax Credit Payments. You can determine eligibility, submit your information, or manage payments. Basically, you can get about half of the increased Child Tax Credit as monthly payments instead of waiting until you file your taxes next year. Most eligible people are automatically getting the monthly payments, but if you aren’t and want them, click the above link.
As always, we’re here if you have questions or need anything. Happy Fall 2021!