قالب وردپرس درنا توس
Home / Tips and Tricks / Taxes 2021: Everything new, including the deadline, incentive payments and unemployment

Taxes 2021: Everything new, including the deadline, incentive payments and unemployment



007-calendar-money-cash-stimulus-bill-tax-2021

Several things have changed in your 2020 tax return.

Sarah Tew / CNET

If you’ve been delaying filing your taxes, here’s a bit of good news: the IRS has the deadline extended until May 17. That said, there are more reasons than ever before start preparing for your return nowThe IRS began processing the 2020 returns on Feb. 12, while continuing to process last year’s missing incentive payments – but those checks aren’t the only thing that can shake up your returns this year. The IRS has adjusted the individual tax brackets for inflation and, to match last year’s CARES Act, changed many rules regarding charity rebates, IRA and 401 (k) plans, and student loans. You may have to navigate some of these to get there May 17 tax return deadline

“This year’s tax season will be unusually busy for both taxpayers and the IRS as many aspects of the coronavirus relief measures passed in 2020 will impact our tax returns,” said Garrett Watson, senior policy analyst at the Tax. Foundation.


Now playing:
Look at this:

Your tax questions answered in 3 minutes


3:29

The Benefit: The sooner you file your taxes, the sooner you can get another incentive check and speed up the delivery of any missing money you owe. “The IRS is encouraging taxpayers to file electronically to avoid delays in processing paper returns, as the agency is still dealing with a significant backlog of paper correspondence from last year,” said Watson.

With that in mind, here’s everything you need to know about the major tax changes for 2020. And if you need help navigating the process and filing electronically, be sure to check out our picks for the best tax software

Stimulus Payments

First of all, good news. If you have a stimulus control from the CARES law of March or the incentive law of December, which does not count as taxable income and does not affect your return. Those payments also don’t count as income to determine your eligibility for federal government assistance or benefit programs.Find out more

Missing claims to incentive payments

If you were eligible to receive all or part of the first incentive check of up to $ 1,200 per person or the second incentive check of up to $ 600 per person, but it never arrived (or did not accurately reflect your dependent children), you can claim your missing money on your 2020 tax return as a Credit for chargeback discountThis credit increases the size of your total tax refund or decreases the amount of taxes you owe.

You submit a file for the Credit for chargeback discount on the 2020 Form 1040 or the 1040-SR Form to claim a catch-up incentive payment. The IRS’s Recovery Rebate Credit worksheet can help you determine if you are missing a payment and, if so, for how much. We have full instructions on this how to apply for a tax refund rebate here

If you don’t usually file a tax return, you may be retired, On SSI or SSDI or not meet the required income threshold – but think you owe incentive money, you must file a return for 2020. Our step-by-step guide explains it exactly how non-affiliates can claim incentive moneyNote that non-affiliates often qualify for the IRS ‘Free File program and would not have to pay to file a federal return.

money-dollar-bills-cash-stimulus-taxes-covid-coronavirus-america-7039

Is incentive money missing? You may be able to claim it on your tax return as a chargeback discount.

Angela Lang / CNET

Tax brackets

For the 2020 tax year, the standard deduction is $ 12,400 for single filers (an increase of $ 200) and $ 24,800 for married couples filing jointly (an increase of $ 400). For heads of households, the standard deduction is $ 18,650 (an increase of $ 300). These increases are inflation adjustments. (Find out more.)

Charitable Deductions

This year, you can deduct up to $ 300 in donations to eligible charities – even if you don’t specify anything. A temporary provision of the CARES Act intended to encourage giving, this deduction cannot be carried over to subsequent years. You can search for eligible organizations with the tax-exempt organization search tool at IRS.gov. (Find out more.)

Student grants

Employers can now contribute up to $ 5,250 a year to an employee’s student loan – and it’s tax-free for both employer and employee as long as it includes payments made March 27, 2002 through December 31, 2020. (Learn more.)

IRAs and Retirement Plans

The CARES Act waived required minimum benefits for IRAs and retirement plans for 2020. Since those RMDs count as taxable income, it’s like getting a tax break if you don’t accept the benefits. (Find out more.)

Earned tax credit

This tax credit is designed for people with lower income and can lower your taxable income and wages. Under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, part of the Coronavirus relief package for December, you can use your earned income for 2019 or 2020 to calculate your 2020 tax credit – a potentially important provision for people who lost their jobs during the pandemic. (The higher the income, the greater the tax credit.)

One thing to note, claiming this credit may cause the IRS to ask for additional information, which can delay your refund.

Child tax credit

As with the tax credit earned, the Child tax credit is designed for working families by typically allowing them to claim up to $ 2,000 per eligible child through a refundable credit. But the new incentive account increases the amount families can claim to $ 3,600 per child under 6 years old and $ 3,000 for children over 6 years old. The money of the credit is split: half is paid through the tax refund and the other half is paid monthly from July to December.

You can use this IRS tool to determine if your child or dependent is eligible for the credit. As with the earned income tax credit, claiming this credit may prompt a request for additional information, which may delay your repayment.

piggy-bank-stimulus-check-cash-savings-debt-personal-finance-014

Changes to the child discount can help your family get more money back this year.

Sarah Tew / CNET

Health flexible spending

If you have a flexible health spending plan, good news: The tax-free contribution limit has been raised to $ 2,750, up $ 50 from last year. (Find out more.)

Medical expenses

Some medical expenses are tax-deductible – and Congress approved a more generous allowance for what you can deduct as part of the December incentive bill. Rather than expenses that exceed 10% of your adjusted gross incomeAs originally planned, you can now deduct medical expenses in excess of 7.5% of your AGI. Excellent! (Find out more.)

Can I deduct any costs for working from home?

No – not unless you are self-employedThe Tax Cuts and Jobs Act suspended tax credits for home office deductions until 2025. Note that this may change next year if Congress chooses to provide more tax credits in the future. COVID-19 auxiliary legislation.

You can find more information about all of these tax changes on the IRS website and on CNETs Personal finances team has prepared a wealth of tax resources, including a series of articles covering the 2020 tax season from every angle.

More tax advice for 2021

The editorial content on this page is based solely on objective, independent reviews by our writers and is not influenced by advertising or partnerships. It is not supplied or commissioned by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.


Source link