2021

COVID Tax Tip 2021-55, April 22, 2021 The premium tax credit helps pay for health insurance coverage bought from the Health Insurance Marketplace. Eligible people can choose to have all, some, or none of the estimated credit paid in advance directly to their insurance company on their behalf. These payments – which are called advance payments of the …

IRS suspends requirement to repay excess advance payments of the 2020 premium tax credit Read More »

COVID Tax Tip 2021-54, April 21, 2021 Economic Impact Payments, also known as stimulus payments, are different from most other tax benefits. People can get the payments even if they have little or no income and even if they don’t usually file a tax return. This is true if they have a Social Security number …

People experiencing homelessness can get Economic Impact Payments and other tax benefits Read More »

IRS Tax Tip 2021-53, April 20, 2021 Taxpayers should file their tax return by the deadline even if they cannot pay the full amount due. If an individual taxpayer owes taxes, but can’t pay in full by the May 17, 2021 deadline, they should: File their tax return or request an extension of time to file …

Taxpayers should file their tax return on time even if they can’t pay their tax bill in full Read More »

IRS Tax Tip 2021-52, April 19, 2021 The IRS mails letters or notices to taxpayers for a variety of reasons including if: They have a balance due. They are due a larger or smaller refund. The agency has a question about their tax return. They need to verify identity. The agency needs additional information. The …

Do’s and Don’ts for taxpayers who get a letter or notice from the IRS Read More »

IRS Tax Tip 2021-51, April 15, 2021 Taxpayers need to know their correct filing status and be familiar with each option. The IRS Interactive Tax Assistant can help them determine their filing status. A taxpayer’s filing status typically depends on whether they are single or married on Dec. 31, which determines their filing status for that entire year. More than …

Taxpayers should use the correct filing status for accuracy and to avoid surprises Read More »

IRS Tax Tip 2021-50, April 14, 2021 The May 17 deadline for individuals to file and pay their federal income tax is fast approaching. While paying taxes is not optional, people do have options when it comes to how they pay taxes. The IRS offers a variety of ways to pay taxes. Some taxpayers must …

Here’s how people can pay their federal taxes Read More »

COVID Tax Tip 2021-49, April 13, 2021 IRS issued guidance for employers claiming the employee retention credit under the Coronavirus Aid, Relief, and Economic Security Act modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Notice 2021-23 PDF explains the changes for the first and second calendar quarters of 2021, including: the increase in …

Claiming the employee retention credit in the first and second calendar quarters 2021 Read More »

IRS Tax Tip 2021-48, April 12, 2021 The IRS reminds taxpayers they may have money waiting for them. An estimated 1.3 million taxpayers didn’t file a 2017 Form 1040 federal income tax return and are due a refund. Here are some things taxpayers should know about these unclaimed refunds: To collect the money, taxpayers must …

What taxpayers need to know about getting their unclaimed 2017 tax refunds Read More »

IRS Tax Tip 2021-47, April 9, 2021 The Small Business Virtual Tax Workshop helps small business owners understand and meet their tax obligations. It’s free and available online 24/7. The workshop provides information for both new and experienced small business owners. Video lessons, which people can watch in any order, include: Federal taxes and your new business …

Free recorded workshop helps small business owners understand their tax obligations Read More »

COVID Tax Tip 2021-46, April 8, 2021 Normally, any unemployment compensation someone receives is taxable. However, a recent law change allows some recipients to not pay tax on some 2020 unemployment compensation. The IRS will automatically refund money to eligible people who filed their tax return reporting unemployment compensation before the recent changes made by …

IRS will recalculate taxes on 2020 unemployment benefits and start issuing refunds in May Read More »