IRS plans to start accepting individual tax returns on January 24. Tax preparers may be preparing returns before January 24 so they can be filed as soon as the IRS is ready. Taxpayers receiving Earned Income Credit or Child Tax Credit on the return may have a delayed refund. IRS is statutorily allowed to … Tax Cliff Notes: Filing? Credits? Refunds?
The year is over tomorrow and taxes were back burnered. . . (no pressure). What to do, don’t want to owe . . . As requested. . . For individuals: Pay outstanding medical bills. Keep track of total medical paid (doctor, hospital, labs, prescriptions, medical mileage, medical insurance paid out of pocket etc) for … Year End Tax Savings. . . for 2021
In case you haven’t heard, Congress gave the IRS and all taxpayers like you a gift for Christmas (maybe not what you expected). They have paused the Build Back Better debate for 2021. The law may be considered again for passage in 2022 session. IF the law had been passed this late in the … Odds & Ends 2022 Mileage Rates
Build Back Back Better (“BBB”) is still being negotiated So here is something a little more concrete: The numbers and limits for 2021 tax season: FACTS & FIGURES, TBA=To be announced Tax Year 2021 2022 Social Security COLA 1.3% 5.9% Part B premium- income < $85,000 … Facts & Figures 2021 Tax year & Some For Tax Year 2022
Yes it has passed the House but it must also pass the Senate before the Bill can become law. What’s in it? That depends on which version is being discussed. Provisions will change until its submitted to the President’s desk. What’s in the House Build Back Better Plan? Careful, what is currently in it … Build Back Better, the Saga Continues
Congress is still hammering out provisions of the Build Back Better plan. Some provisions have been modified and other provisions have been removed. The bank reporting of deposits of $600 or more have been changed to $10,000 or more (contacting Congress DOES change things?!). So looking to those things that are already determined … MUSICAL CHAIRS & 2021 TAX RATES
If its been more than a year since you paid on or contacted the IRS for that annoying tax debt, the IRS may refer your account to a private debt collection agency. However, the IRS only works with a handful of agencies. Here’s how to know if that collection letter is legitimate: Collection letter comes … IRS Working with Private Debt Collection Agencies AGAIN!
Tried to call the IRS lately? Nobody answers the phone (or so it seems). Return processing is slow. As June 25, 2021, there were approximately 16.7 million 2019 and 2020 tax returns and almost three million amended returns waiting to be processed*. Then there’s the advanced Earned Income Credit and unemployment over payment stimulus … Internal Revenue (But No) Service . . .
IRS is processing its backlog and is issuing lots of “love letters” otherwise known as Tax Notices. Many of the 2020 Tax year tax notices are for Recovery Credit. For Tax Year 2020, Taxpayers not receiving the the full stimulus amount for both payments ($1200 per adult and/or $500 per child received March -May … Love Letters & the IRS (Recovery Credit Tax Notices Part II)
An old parable indicates that a live frog will consent to being cooked if the heat is slowly increased. Seems that the same principle applies to taxes. Part of the Build Back Better Act of 2021 is being crafted in the House Ways and Means Committee. It’s not law yet, but the provisions discussed … Tax Increases and the Slowly Roasted Frog. . .