2021 Tax Filing Season Opens on January 24, 2022

Tax Changes and Key Amounts for the 2021 Tax Year

By:  Rocky Mengle, Joy Taylor | Kiplinger

If you haven't started already, it's time to begin thinking about your 2021 tax return. After all, the more tax planning you do, the more money you may be able to save. However, proper tax planning requires an understanding of what's new and changed from the previous year — and there are plenty of tax law changes and updates for the 2021 tax year that smart taxpayers need to know about.

The Covid-relief bills signed into law last December and March include a number of provisions that could impact your 2021 tax return. Other 2021 tweaks are the result of new rules or annual inflation adjustments. But no matter how, when or why the changes were made, they can hurt or help your bottom line — so you need to be ready for them. To help you out, we pulled together a list of the most important tax law changes and adjustments for 2021 (some related items are grouped together). Use this information now so you can hold on to more of your hard-earned cash in April when it's time to file your 2021 return.

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IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments

By: IRS.GOV

COVID Tax Tip 2022-03, January 5, 2022

The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January. Using the information in these letters when preparing a tax return can reduce errors and delays in processing.

People receiving these letters should keep them. Do not throw them away. These letters can help taxpayers, or their tax professionals prepare their 2021 federal tax return.

Advance child tax credit payments letter can help people get the remainder of 2021 credit.

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Here are must-know changes for the 2021 tax season

Another year of grappling with coronavirus has led to significant tax law changes for the 2021 season.

While year-end tax planning is always important, recent adjustments — and the possibility of more on the horizon — may offer unique benefits along with potential pitfalls.

 

Recovery Rebate Credit

Missing a stimulus payment? Find out how you may be eligible to claim a Recovery Rebate Credit on your 2020 or 2021 federal tax return if you didn't get an Economic Impact Payment or got less than the full amount.

The first and second rounds of Economic Impact Payments were issued in 2020 and early 2021. The first two rounds of Economic Impact Payments were advance payments of the 2020 Recovery Rebate Credit claimed on a 2020 tax return.

2021 Tax Brackets and Other Tax Changes

By: Michelle P. Scott | Investopedia

The Internal Revenue Service (IRS) updates tax rates, allowances, and thresholds every year. These figures are applicable to the tax law provisions that are adjusted annually for inflation. The top tax rate will continue to be 37% for returns filed by individual taxpayers for the 2021 and 2022 tax years but the standard deduction, tax bracket ranges, other deductions, and phase-outs will increase.

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4 Ways Your 2021 Taxes Will Be Different From 2020's

By: John Waggoner | AARP

It's never too early to start planning to avoid a surprise tax bill

 

You've checked and rechecked your 2020 tax return, sent it to the IRS, and then spent some time sobbing in the basement. Now you're all set to plan for your 2021 tax return.

 

No? Think of it this way: A bit of planning now can keep you from wailing and gnashing your teeth next year, when you fill out your 1040 for this year.

Bear in mind that the White House has proposed major tax changes, most of which affect high-income taxpayers — those earning more than $400,000 a year — and those with taxable investments. Will those tax changes take effect for 2021? Probably not, although you never know.

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Looking for a EASIER way to file taxes?
 
P&D Tax Pros are here to make filing your taxes as easy as 1-2-3!
 

P&D Tax Pros has made things easy when it comes to tax preparation. No more sitting in long lines, making appointments around your busy schedule and waiting weeks to get your refund! All you have to do is:

 

  1. Fill out the form with all your information and attach the documents needed. Include your AGI (Adjusted Gross Incomes) or #PIN from your previous tax year.

  2. Sign the authorization form.

  3. Collect your refund!

 

P&D TAx Pros takes pride in getting you back the most refund possible. We specialize in taxes for Military service men, women and their families, overseas contractors, virtual assistants and homebased businesses. We also offer other services such as bookkeeping, payroll and administrative.

 

For more information on our tax services or the other services that we offer please feel free to contact us!


What you need to file taxes:
 

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.

WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.

The IRS Encourages Taxpayers to Consider Charitable Contributions

Get a closer look at why the IRS is encouraging taxpayers to make charitable contributions by December 31, 2021.

Steps to Take Now to Get a Jump on Your Taxes

Tax planning is for everyone. Get ready today to file your 2021 federal income tax return. Planning ahead can help you file an accurate return and avoid processing delays that can slow your tax refund.

Earned Income Credit: Tax law changes for tax year 2021 and beyond

Changes for taxpayers without qualifying children

The largest changes to the EIC apply to taxpayers without qualifying children. Note that the changes in this section apply only to the 2021 tax year.

IRS Operations During COVID-19: Mission-critical functions continue

We're open and processing mail, tax returns, payments, refunds, and correspondence. However, COVID-19 continues to cause delays in some of our services.

New Clients
 
  • Driver License or another form of government picture ID.

  • Social Security Cards & Birth Certificates for all persons on your tax return.

  • Tax return copies for the last 3 years.

All Clients

 

  • Social Security Cards & Birth Certificates for new additions on your tax return.

  • A check from your bank account marked "void" to use for electronic deposit of refunds or to pay any tax due (only if a change from last year).

  • W2 forms and last pay stubs for each job you held during the year.

  • 1099 forms for interest, dividends, social security, investment sales unemployment, other income, etc. 

  • Year-end brokerage statements for stocks & mutual funds, etc.

  • Purchase & sale information on any stocks or mutual funds you sold.

  • Self-Employment income & expense records and reports.

  • Rental income & expense records and reports.

  • Records or details of any other income received during the year.

  • Mileage Log for business, job, or charitable purposes. Including ending odometer reading & total mileage driven during the year.

  • IRA & retirement statements.

  • Records of Medical expenses, Real Estate taxes & Mortgage interest paid during the year.

  • Records of cash charitable contributions made during the year.

  • Records of non-cash charitable contributions - Salvation Army, Rescue Mission, Mom's House, etc.

  • Records of any job-related expenses.

  • Form 1098T and amounts paid for higher education or trade schools.

  • Child & dependent care info - payments to babysitters, day camps, child care centers. Address & Federal ID Number of your provider. 

  • K1 forms for any Partnerships, LLCs, S-Corps, Estates, Trusts, etc.

  • Records of estimated tax payments made for the tax year.

  • Agreement papers if recently-separated.

  • Divorce decree or agreement papers if previously married. 

  • Your child's or dependents income information.

  • PROOF OF HEALTH INSURANCE for all persons listed on your return

How to file taxes with P&D Tax Pros?
  • PLEASE USE THE SECURE FORM BELOW or FAX YOUR INFORMATION TO (660) 460-8028 BE SURE TO INCLUDE YOUR AGI; ADJUSTED GROSS INCOME OR PIN# FROM LAST YEAR’S TAX RETURN

  • You can also fax or email to submit your W-2′s and we will process your taxes and email your taxes to you to sign documents then submit. 

  • If you are a business please click on the business tab to fill out your expenses for your corporation, small business, or 1099 misc.