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It’s that time of year again when many people start thinking about their tax returns. Whether you’re a seasoned pro or a first-time filer, it’s important to be aware of some key changes for the upcoming tax season.
One major change for the 2021 tax season is the new deadline for filing your federal income tax return. Due to the ongoing Covid-19 pandemic, the IRS has extended the deadline for filing your 2020 federal income tax return to May 17, 2021. This gives taxpayers an additional month to file their returns without incurring any penalties.
Another important change to be aware of is the recovery rebate credit. If you did not receive the full amount of the Economic Impact Payments (stimulus checks) that you were eligible for in 2020, you may be able to claim the remaining amount as a recovery rebate credit on your 2020 tax return.
Additionally, there are some changes to deductions and credits that taxpayers should be aware of. For example, the standard deduction for 2020 has increased to $12,400 for single filers and $24,800 for married couples filing jointly. There are also new tax credits available, such as the Recovery Rebate Credit mentioned earlier, as well as credits for energy-efficient home improvements and qualified tuition expenses.
It’s always a good idea to start gathering your tax documents early and consider consulting with a tax professional if you have any questions or concerns. Remember, the sooner you file your tax return, the sooner you can receive any refund you may be owed. And with these key changes in mind, you’ll be well-prepared for the upcoming tax season.
