Be patient with the IRS this tax season
According to Erin M. Collins, National Taxpayer Advocate, the IRS is currently “drowning in paper”. “As of late December 2021, there was a backlog of 6 million original paper individual returns, 2.3 million amended individual returns, 2 million Forms 941 and 941X, and approximately 5 million items of taxpayer correspondence”. ” All told, the IRS […]
Will 2021 Child Tax Credit pre-payments affect my 2021 return?
The short answer is, yes. If you received advance CTC payments in 2021, the amounts paid were estimates based upon your most current tax filing (from either your 2020 or 2019 return). Taxpayers will reconcile the Child Tax Credit Advance Payments to the total allowable CTC determined using schedule 8812 on their 2021 return. The […]
What to expect in Tax Year 2021
Many of President Biden’s proposed tax changes for TYE 12/31/21 affect higher income individuals; some are complex and relate to Estate, Capital Gains and S-Corporation taxes. However, there are specific areas that will pertain to the more common taxpayer, including – – Extending the expanded ACA Premium Credit; this is the credit that helps low […]
IRS Refunds Excess Tax Paid on Unemployment Compensation
The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000. Nearly 4 million taxpayers overpaid their taxes on unemployment compensation received in 2020. To […]