A Guide to Filing Taxes This Year

When Can I file My 2021 Tax Return? (the ones you file in 2022)

You can file at any time as the IRS set the start of e-filing on January 23rd, so you are good to go.

When Is the Deadline for Filing My 2021 Tax Return?

The deadline for filing your 2021 tax return is midnight on April 18, 2022, unless you file an extension.

What Are Some 2021 Events That Can Provide Some Tax Relief?

Charitable Deductions:

For 2021, you can deduct up to $600 per tax return if filing jointly (married) and $300 for all other filing statuses. Your contributions can be in the form of cash, check, or credit card. Remember, you will need proper documentation like receipts or donation letters.

Medical Expenses and Health Insurance Costs:

This year you and your family members may have had some medical bills. You can deduct medical expenses more than 7.5% of your adjusted gross income if you can itemize your deductions.

Advance Child Tax Credits:

Beginning with the most recent tax year (2021), the age limit and the Child Tax Credit amount increased and are now fully refundable – meaning you’ll be eligible for the benefits even if you do not owe taxes. 

Eligible families are those that received advance CTC payments for each child from July 2021 to December 2021. These payments were sent in advance and are a portion of the tax year 2021 Child Tax Credit.

Expanded Earned Income Tax Credit:

The Earned Income Tax Credit was enhanced under the American Rescue Plan to include workers without kids, and the maximum credit was increased. Eligibility was expanded to include taxpayers between ages 19 – 25 and who are over 65. This tax credit is worth up to $6,728 for 2021.

Expanded Child and Dependent Care Credit:

The American Rescue Plan also made changes to the Child and Dependent Care Credit but only for the tax year 2021. If you send your children under the age of 13 to daycare, aftercare, summer camp, or even sports camps so you can work, you may be eligible for an enhanced Child and Dependent Care Credit of up to $8,000 for two or more children and up to $4,000 for one child. The new provision also makes the credit completely refundable, which means you may collect it even if you don't owe any taxes.

Unemployment Benefits:

Last year, coronavirus caused millions of Americans to be out of work for some part of the year. If you receive help from unemployment insurance, you must pay taxes on payments received from unemployment benefits. You should receive a 1099-G form reporting unemployment benefits received.

Business and at Home Deductions:

If you're self-employed, you may deduct everything from business travel miles to the section of your house allocated to your home office. 

When you are Tax Filing, you should always consult a CPA or at least a tax professional to be sure you get the maximum credits you deserve. This will also ensure that you do not make a costly error on your filing documents. CPAs and tax specialists can assist you with your financial planning for 2022 and beyond.

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