IRS has sent millions of taxpayers Letter 6419 which details amounts for the advanced child tax credit payment. The IRS has indicated, however, that some of these letters may have the incorrect amounts. The IRS is informing taxpayers to keep the Letter 6419 and to check the IRS site to determine if a different amount
Tax Corner | Blog
IRS will soon require a selfie to be taken when using the IRS.gov account. Previously, personal biometrics were not required. IRS has been using ID.me to confirm a taxpayer’s identity which requires government ID, a selfie and copies of their bill in order to register for an account and to obtain taxpayer documents with the
The IRS has announced that it will begin the 2022 tax season for 2021 tax returns on January 24, 2022. This will mean that returns that are able to be e-filed will start to be accepted. While individual tax returns are due on April 18 this year as no extensions have been announced, tax returns
As of January 1, 2022, platforms like PayPal, Venmo, and Zelle will be required to report transactions to the IRS and issue 1099-K to the taxpayer when there are commercial transactions of $600 or more. Small business owners, which are the predominant taxpayer groups that are impacted, are already required to report the income they
Plus-up stimulus payments will be sent with a deadline of December 31, 2021. Those taxpayers that have already filed their 2019 and 2020 returns and are eligible will receive these. The plus-up stimulus payments are for those taxpayers who received a stimulus payment but in a lower amount than they were eligible for. No further
Some taxpayers may be in for a surprise when filing their taxes with repayment of the child tax credit. The advanced child tax credit was not free money but acted more of an advance to be paid to eligible families earlier than when filing tax return. So why will some taxpayers need to pay it
December 15 marked the last of the advanced child tax credit payments. Those taxpayers that were eligible to receive the advanced child tax credit payments were receiving checks from the IRS on the 15th of every month starting in July. There is a plan to extend these through the Build Back Better legislation before the
Before the year ends, small business owners should revisit their estimated tax payments to ensure they have paid enough to cover the income received during the 2021 tax year. The fourth quarter estimated tax payments are due by January 15 so any final amounts should be made by this. When estimated tax payments are made,
There is good news for taxpayers who want to donate before year end but don’t itemize. For 2021, those taxpayers that are taking the standard deduction will be able to take an above the line deduction for charitable deductions. For single filers, the amount is $300 and for married filing jointly, the amount is $600.
The proposed Build Back Better Plan (BBB) which is currently with the Senate, takes a step toward addressing the much talked about state and local income tax deduction, better known as SALT. When the Tax Cut Jobs Act was passed, SALT was capped at $10,000. This impacted high income tax states like New York and
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