After a year like 2020, all we want to do is put it behind us. However, for those Americans who received even a small paycheck, there is more work to be done before you can say goodbye to last year forever. So, before you get comfortable, note these tips that will help make your 2021 tax season sail smoothly.
Get Your Papers In Order
If you did not start gathering your documents in December, as Laveniir recommended, don't worry—you still have time. Your employer(s) has until January 31 to deliver your W-2 and you will need those before you get started. Also, 1099 forms will arrive in late January or early February. However, there are some tax papers you may already have:
- Last year's federal/state tax returns
- Social security numbers for everyone you can claim
- Applicable deductions, credits and payments that may affect your 2020 income taxes, like: retirement account contributions; educational expenses, like student loans; some medical expenses; charitable giving; and state and local taxes.
Call Laveniir
You need trustworthy experts to help you file and Laveniir has them. There are so many critical things the average person does not think about when it comes to filing taxes. But experts know them in their sleep. Have you thought about how to claim items in your home office? The money you got from babysitting? How to account for your gas mileage on business trips? Laveniir has. With more than 10 years of expertise, our experts know how to sort out the things that you need to claim so that you get the maximum return.
Know Important Dates
Be sure to keep these dates and limits in mind so you can maximize any deductions and credits available to you in 2020.
Tax Payment Deadlines
- January 31, 2021: W-2s are due from employers; forms 1099 are due for payers of interest, dividends, and other types of income;
- April 15, 2021: Your 2020 tax forms and any tax payments you owe are due to federal and state governments;
- October 15, 2021: If you filed Form 4868 to extend the due date of your tax return, you must file your tax return and pay any tax, interest, or penalties due by this date;
- April 15, June 15, September 15, and January 15: Estimated tax payments are due for taxpayers who don't have enough taxes withheld by an employer.
Retirement Contribution Deadlines and Limits
April 15, 2021: Last day to open an IRA or make an IRA contribution for the 2020 tax year, even if you've gotten an extension for filing your taxes.
Healthcare Deadlines and Limits
- January 1, 2021 to March 31, 2021: If you miss your Initial Medicare Enrollment Period, you can sign up during Medicare's General Enrollment Period, and your coverage will start July 1;
- 2020 AGI Limits for Premium Tax Credits on the Marketplace: $49,960 for a single person and $103,000 for a family of four.
Contact Laveniir today to set up your free consultation.
