April 15 is only 48 days away; there is news you need to know about Income Taxes that will impact you today, tomorrow, and next year.
I am personally in a quandary about writing this blog. Humans are by nature prone to procrastinate until forced against a hard deadline. Read on to see both sides of the argument.
The Benefits of Filing Early
Why You Should Consider Filing Taxes Early in 2021
We had to wait 16 more days to begin filing taxes this year than in 2020. The IRS bumped the date to receive returns to February 12, to prepare following the December tax law changes. But now that they are officially accepting returns, you might want to get a jump start on sending them in.
This year, it’s essential to start filing taxes early if you’re owed any stimulus money from the first or second checks that went out. For example, if you had a baby in 2020, you did not receive additional money for that dependent yet. But using the Recovery Rebate Credit, you can get your cash. The same goes for if you didn’t receive a stimulus check at all, or believe you did not receive the full amount.
The sooner you file, the quicker you can secure those funds.
Another reason to filing early? Fraud prevention.
Every year, fraud is a significant problem at tax time. Criminals assume taxpayers’ identities and steal their refund money. Filing taxes early means you can give fraudsters less time to accept your refund on your behalf. (No, unfortunately, they’re not interested in paying your tax bill.)
Disaster Relief and Later filing
Now in direct opposition to what I just wrote, due to the 2021 Winter Storm, the IRS has extended the filing and payment deadline to June 15, 2021, for individuals and businesses who experienced disruptions due to the winter storm that hit Texas and other southern states the week of February 15. This relief automatically applies to all taxpayers who reside or operate a business in Texas but may include others impacted by the storm.
Taxpayers who receive this relief may postpone filing returns and paying any associated tax due until June 15, 2021, if those returns were originally due to be filed on or after February 11, 2021, and before June 15, 2021. Taxpayers also now have until June 15, 2021, to make 2020 IRA contributions. The new date of June 15, 2021, includes:
- Individual Income Tax Form 1040
- Estate and Trust Income Tax Form 1041
- Partnership Income Tax Form 1065
- Corporation Income Tax Form 1120
- S-Corporation Income Tax Form 1120S
- Gift Tax Form 709
- Estate Tax Form 706
The June 15 deadline also applies to quarterly estimated income tax payments due on April 15
Our Plan for Our Clients
We are working and planning to continue as though your deadline is April 15. We know that some will need the extra time; however, we want to be timely and focus on 2021.
What do you need to do?
Gather your information and upload it to your Smart Vault Portal
Next week’s blog – The Biden Tax Plan
Got something on your mind or have a question?
All of this can occur even at a distance.
Call us at 214-239-4700 or click to set up a ZOOM MEETING
Michael Tannery CPA CDFA® AIF® ● CEO
Registered Principal | Tannery & Company
Be A Financial Olympian™
The opinions expressed in this material are for general informational purposes only and is not a substitute for professional advice. Individual circumstances do vary.