Real Estate Taxes vs. Property Taxes
Written by webtechs

Real Estate Taxes vs. Property Taxes

If you’re a homeowner, you probably know what real estate taxes are. You might even refer to them as property taxes since the terminology has become interchangeable. A lot of people may not realize the two taxes are different.

Though you may whine when getting your “property tax” statement letting you know the amount of tax you are going to have to pay annually or the amount your mortgage company is going to shell out for your real estate taxes. When you have a mortgage, it’s typically part of your payment. The misperception comes from the word “property”, due to the fact that there is additionally a personal property tax.

The Way Real Estate Taxes Work

Real estate taxes are yearly taxes homeowners are required to pay on the evaluated value of their house. Each city and state metro area establishes how much the real estate tax rate is by multiplying the fair market price of a home by the prearranged percentage in that metro area to come to the tax assessment valuation. When hearing people complain about the high cost of real estate taxes in their around their home. This is what they’re complaining about, and higher tax rates are typically found in larger cities such as Phoenix or Houston.

The amount of real estate tax you are going to pay is subject to how much your home is valued in addition to the part of the country your house is located in. For instance, a rural city in Arkansas probably has a lower real estate tax rate than popular big cities on say, a costal city or in a major metro area such as San Diego or Denver.

What Are Personal Property Taxes?

Property tax is different name for personal property tax. Your personal property is in reference to items that are not enduring, or items that you can move. For instance, your vehicle is personal property and when it gets registered each year, you’re basically paying a property tax on it.

Things such as boats, jet skis, campers, RVs, side by sides, farm equipment, and business equipment such as desks or equipment are taxed under personal property. Because they can all be moved, the personal property tax is estimated on their value, likewise to the way your house’s tax value is estimated.

The amount you are going to pay for your personal property tax on these articles also is subject to your metro area and city, and the average personal property tax rate in addition to how much estimated value each personal article is worth.

Why Real Estate and Personal Property Are Different Taxes

First, the tax rate that you are going to pay is different. It is enough to say that real estate taxes are a lot higher than personal property taxes. For instance, you can usually register a vehicle annually for a fee of $45 to $80, with a value of $25,000 to $65,000. Your home is assessed at a lot higher value with a lot higher tax rate. Even the most affordable real estate taxes in the US for a commonly valued home would probably be several hundred dollars.

Second, you might be able to deduct real estate taxes on the home as costs on your federal tax return when you reside in the home and itemize deductions on Schedule A. A personal property tax may also be deducted when you itemize, however the deductions are going to be a lot less on a jest ski or motorhome than they would on your house and go in a different place on the federal return. This isn’t only since your personal property usually has less value than a home but also since it’s taxed at a lower rate than the real estate tax.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Stimulus Checks In 2022
Written by Craig B

Top Tax Frequently Asked Questions

Are you able file your taxes or comprehend what you owe Uncle Sam? There is a strong chance you’re confused about tax regulations. On the bright side, we’ve compiled a list of answers to 5 common tax questions you may be asking — including if you should hire a tax preparer, if you should file if you’re a college student, when you’ll receive your tax refund and more.

  1. Should I hire a tax preparer?

If you choose to hire a tax professional is subject to your comfort level with the tax-filing procedure and the convolution of your return. If you’re seeking a tax preparer with a greater degree of experience, consider a CPA or E.A. Both professionals are required pass specific exams to get licensed.

  1. What is the standard deduction?

The standard deduction is an allocated amount of money of which you aren’t taxed. The total of the standard deduction that you claim is subject on your tax status and the year that you’re filing. Taxes filed in 2019, the standard deduction $12,000 for filing single and $24,000 for married couples filing together.

  1. When will my tax refund get to me?

When your tax refund will get to you is subject on how and when you filed. According to the IRS 90% of federal tax refunds are distributed within twenty-one days, and details are usually available within a day from when the IRS receives an e-filed tax return or 4 weeks following them receiving a traditional paper return. Utilize the IRS Where’s My Refund? device and the IRS2Go app to track it.

  1. Should I file taxes if I’m enrolled in college?

Prior to you filing taxes as a student going to college, think about your income and if your parents will claim you as a dependent on their taxes. Students that earn less than $12,000 don’t need to file a tax return but might still gain from filing if taxes were withheld from their paycheck or want to claim specific tax benefits like the American opportunity tax credit.

  1. How can I get the largest tax refund this year?

To receive the largest tax refund this year, begin to think about your tax circumstances early, preferably prior to the tax year ending. Next, consider how to make the most out of deductions through itemizing if you’re able to, declare tax credits and deductions in which you qualify for and give to your retirement accounts. When your tax situation is convoluted, think about working with an experience tax preparer.

  1. How do I select the preferable tax-filing software?

When evaluating the preferable tax-filing software for your circumstance, think about the costs and services offered. A great place to begin is with the dozen software businesses that work alongside the IRS-affiliated Free File Alliance. They are IRS approved and satisfy specific security and privacy conditions.

  1. Who is established as a dependent on my taxes?

Dependents may include qualifying children, family members and other people that you support. Dependents need to satisfy certain age, income and housing conditions.

  1. How can I evade IRS tax scams?

Evade typical IRS tax scams by handling suspicious or out of left field communications from alleged IRS officials with a healthy suspicion. The IRS will usually reach out by regular mail first, so be cautious of e-mails, any texts or phone calls insisting to be from the IRS. Additionally, be vigilant for poor grammar, threats of calling the police and demands for payments through gift cards or wire transfers.

  1. Should I choose direct deposit?

Yes, when you want to get your tax refund as fast as possible, choosing direct deposit can be faster than, for instance, petitioning a check to be mailed out.

  1. Can I decrease my chances of getting audited?

To decrease the chance of a tax audit, make sure there are no errors, disclose all of your income, retain correct records and stay away from illegal or inappropriate tax moves like exaggerating charitable donations.

Whereas these answers to common tax questions may help you begin in fulfilling your tax responsibilities, you might still have questions as you start to file your return. If you see any questions you do not see on this list, contact us and we will be more than happy to answer them.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Stimulus Checks In 2022
Written by Craig B

Stimulus Checks In 2022

Many folks are hoping for a fourth round of stimulation. However, a succession of catastrophic occurrences will almost certainly be required for a follow-up round to be permitted.

Many folks were ecstatic to get $1,400 stimulus cheques when the American Rescue Plan was signed into law in mid-March. In fact, many people are still hoping for a fourth stimulus check, if not this year, then early next year.

However, the chances of a second stimulus round are dwindling at this moment. The economy is substantially better now than when the American Rescue Plan was enacted. We’re also in a different position with the pandemic now that coronavirus vaccinations are widely available.

Still, it’s feasible that another stimulus package will be announced in the near future. However, these circumstances would very certainly have to occur in order for that to happen.

1. The unemployment rate rises dramatically.

The national unemployment rate hit a new high of 14.8 percent in April of 2020. The unemployment rate had dropped to 6% by March 2021. The unemployment rate was 5.9% in June, the most recent month for which data is available. As businesses prepare to reopen in full, there’s a high possibility the unemployment rate will continue to fall. It will be tough to justify another stimulus package if unemployment continues to fall. However, if the unemployment situation continues to deteriorate, another round of stimulus payments may be made. To be clear, the unemployment rate would have to rise significantly for this to happen. It won’t be enough to warrant a fourth stimulus check if it increases to 6% or 6.1 percent in July or August.

2. The outbreak becomes more severe.

Unfortunately, the highly transmissible Delta variation is currently the most common COVID-19 strain in the country, and the outbreak has been spreading in recent weeks. Fortunately, things aren’t as bad as they were at the onset of the pandemic or even during the winter surges last year. However, the situation is so dire that the CDC recently reversed its position on mask use and now recommends that even fully vaccinated adults use a mask when indoors in a public setting. If the disease truly spreads, it could lead to more relief negotiations, which could result in another stimulus check.

3. States begin to shut down once more.

Many states enforced lockdowns early in the pandemic to try to stop COVID-19 from spreading. This meant that nonessential firms were prohibited from operating, resulting in the loss of millions of jobs in a matter of weeks. While we may not see the same level of drastic shutdowns at this point in the epidemic, states may impose limitations and capacity constraints on enterprises once more. As a result, many local economic recovery efforts may be hampered. And if that happens, it will be easier to argue that the public requires more direct assistance.

You don’t want another stimulus check.

While a fourth stimulus check would be ideal, the reality is that none of the aforementioned scenarios should be desired. While it would be premature to rule out another stimulus package, we should concentrate our efforts on hoping we won’t need one. Besides, there are other methods to acquire a windfall besides a stimulus check, such as getting a side job to supplement your income. Parents who qualify for the Child Tax Credit will get monthly payments until the end of the year, as well as a lump sum payment in 2022. While more stimulus money may not be available, there are alternative methods for Americans to enhance their bank accounts.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Stimulus Checks In 2022
Written by Craig B

Tax Frequently Asked Questions

Are you able file your taxes or comprehend what you owe Uncle Sam? There is a strong chance you’re confused about tax regulations. On the bright side, we’ve compiled a list of answers to 5 common tax questions you may be asking — including if you should hire a tax preparer, if you should file if you’re a college student, when you’ll receive your tax refund and more.

  1. Should I hire a tax preparer?

If you choose to hire a tax professional is subject to your comfort level with the tax-filing procedure and the convolution of your return. If you’re seeking a tax preparer with a greater degree of experience, consider a CPA or E.A. Both professionals are required pass specific exams to get licensed.

  1. What is the standard deduction?

The standard deduction is an allocated amount of money of which you aren’t taxed. The total of the standard deduction that you claim is subject on your tax status and the year that you’re filing. Taxes filed in 2019, the standard deduction $12,000 for filing single and $24,000 for married couples filing together.

  1. When will my tax refund get to me?

When your tax refund will get to you is subject on how and when you filed. According to the IRS 90% of federal tax refunds are distributed within twenty-one days, and details are usually available within a day from when the IRS receives an e-filed tax return or 4 weeks following them receiving a traditional paper return. Utilize the IRS Where’s My Refund? device and the IRS2Go app to track it.

  1. Should I file taxes if I’m enrolled in college?

Prior to you filing taxes as a student going to college, think about your income and if your parents will claim you as a dependent on their taxes. Students that earn less than $12,000 don’t need to file a tax return but might still gain from filing if taxes were withheld from their paycheck or want to claim specific tax benefits like the American opportunity tax credit.

  1. How can I get the largest tax refund this year?

To receive the largest tax refund this year, begin to think about your tax circumstances early, preferably prior to the tax year ending. Next, consider how to make the most out of deductions through itemizing if you’re able to, declare tax credits and deductions in which you qualify for and give to your retirement accounts. When your tax situation is convoluted, think about working with an experience tax preparer.

  1. How do I select the preferable tax-filing software?

When evaluating the preferable tax-filing software for your circumstance, think about the costs and services offered. A great place to begin is with the dozen software businesses that work alongside the IRS-affiliated Free File Alliance. They are IRS approved and satisfy specific security and privacy conditions.

  1. Who is established as a dependent on my taxes?

Dependents may include qualifying children, family members and other people that you support. Dependents need to satisfy certain age, income and housing conditions.

  1. How can I evade IRS tax scams?

Evade typical IRS tax scams by handling suspicious or out of left field communications from alleged IRS officials with a healthy suspicion. The IRS will usually reach out by regular mail first, so be cautious of e-mails, any texts or phone calls insisting to be from the IRS. Additionally, be vigilant for poor grammar, threats of calling the police and demands for payments through gift cards or wire transfers.

  1. Should I choose direct deposit?

Yes, when you want to get your tax refund as fast as possible, choosing direct deposit can be faster than, for instance, petitioning a check to be mailed out.

  1. Can I decrease my chances of getting audited?

To decrease the chance of a tax audit, make sure there are no errors, disclose all of your income, retain correct records and stay away from illegal or inappropriate tax moves like exaggerating charitable donations.

Whereas these answers to common tax questions may help you begin in fulfilling your tax responsibilities, you might still have questions as you start to file your return. If you see any questions you do not see on this list, contact us and we will be more than happy to answer them.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Stimulus Checks In 2022
Written by Craig B

Will There Be Another Stimulus Check?

Many folks are hoping for a fourth round of stimulation. However, a succession of catastrophic occurrences will almost certainly be required for a follow-up round to be permitted.

Many folks were ecstatic to get $1,400 stimulus cheques when the American Rescue Plan was signed into law in mid-March. In fact, many people are still hoping for a fourth stimulus check, if not this year, then early next year.

However, the chances of a second stimulus round are dwindling at this moment. The economy is substantially better now than when the American Rescue Plan was enacted. We’re also in a different position with the pandemic now that coronavirus vaccinations are widely available.

Still, it’s feasible that another stimulus package will be announced in the near future. However, these circumstances would very certainly have to occur in order for that to happen.

1. The unemployment rate rises dramatically.

The national unemployment rate hit a new high of 14.8 percent in April of 2020. The unemployment rate had dropped to 6% by March 2021. The unemployment rate was 5.9% in June, the most recent month for which data is available. As businesses prepare to reopen in full, there’s a high possibility the unemployment rate will continue to fall. It will be tough to justify another stimulus package if unemployment continues to fall. However, if the unemployment situation continues to deteriorate, another round of stimulus payments may be made. To be clear, the unemployment rate would have to rise significantly for this to happen. It won’t be enough to warrant a fourth stimulus check if it increases to 6% or 6.1 percent in July or August.

2. The outbreak becomes more severe.

Unfortunately, the highly transmissible Delta variation is currently the most common COVID-19 strain in the country, and the outbreak has been spreading in recent weeks. Fortunately, things aren’t as bad as they were at the onset of the pandemic or even during the winter surges last year. However, the situation is so dire that the CDC recently reversed its position on mask use and now recommends that even fully vaccinated adults use a mask when indoors in a public setting. If the disease truly spreads, it could lead to more relief negotiations, which could result in another stimulus check.

3. States begin to shut down once more.

Many states enforced lockdowns early in the pandemic to try to stop COVID-19 from spreading. This meant that nonessential firms were prohibited from operating, resulting in the loss of millions of jobs in a matter of weeks. While we may not see the same level of drastic shutdowns at this point in the epidemic, states may impose limitations and capacity constraints on enterprises once more. As a result, many local economic recovery efforts may be hampered. And if that happens, it will be easier to argue that the public requires more direct assistance.

You don’t want another stimulus check.

While a fourth stimulus check would be ideal, the reality is that none of the aforementioned scenarios should be desired. While it would be premature to rule out another stimulus package, we should concentrate our efforts on hoping we won’t need one. Besides, there are other methods to acquire a windfall besides a stimulus check, such as getting a side job to supplement your income. Parents who qualify for the Child Tax Credit will get monthly payments until the end of the year, as well as a lump sum payment in 2022. While more stimulus money may not be available, there are alternative methods for Americans to enhance their bank accounts.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

IRS Online Payment Plans 2022
Written by Craig B

IRS Online Payment Plans

If you are a qualified taxpayer or authorized representative (Power of Attorney) you can apply for a payment plan (including installment agreement) online to pay off your balance over time. Read on to learn more. You can a payment plan at: https://www.irs.gov/payments/online-payment-agreement-application

Qualification

Your specific tax situation will determine which payment options are available to you. Payment options include full payment, a short-term payment plan (paying in 120 days or less) or a long-term payment plan (installment agreement) (paying monthly).

You may qualify to apply online if:

  • Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
  • Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.

If you are a sole proprietor or independent contractor, apply for a payment plan as an individual.

Note: Setup fees may be higher if you apply for a payment plan by phone, mail, or in-person. Get more information on other payment plan options and fees.

Payment Plan Applications

  • Name exactly as it appears on your most recently filed tax return
  • Valid e-mail address
  • Address from most recently filed tax return
  • Date of birth
  • Filing status
  • Your Social Security Number or Individual Tax ID Number (ITIN)
  • Based on the type of agreement requested, you may also need the balance due amount
  • To confirm your identity, you will need:
    • financial account number or
    • mobile phone registered in your name or
    • activation code received by postal mail (takes 5 to 10 business days)
  • If you previously registered for an Online Payment Agreement, Get Transcript, or any Identity Protection PIN (IP PIN), you should log in with the same user ID and password. You will need to confirm your identity by providing the additional information listed above if you haven’t already done so.

Costs

Pay Now

  • $0 setup fee
  • No future penalties or interest added

Pay amount owed in full today directly from your checking or savings account (Direct Pay)  or by check, money order or debit/credit card.
Fees apply when paying by card.

Short-term Payment Plan (120 days or less)

  • $0 setup fee
  • Plus accrued penalties and interest until the balance is paid in full

After applying for a short-term payment plan, you can pay the amount owed directly from your checking or savings account (Direct Pay) or by check, money order or debit/credit card.
Fees apply when paying by card.

Long-term Payment Plan (Installment Agreement)  (Pay monthly)

Pay monthly through automatic withdrawals

  • $31 setup fee (low income: setup fee waived)
  • Plus accrued penalties and interest until the balance is paid in full

Pay amount owed through Direct Debit (automatic payments from your checking account), also known as a Direct Debit Installment Agreement (DDIA). This is required if your balance is more than $25,000.
Pay each month (non-Direct Debit)

  • $149 setup fee (low income: $43 setup fee that may be reimbursed if certain conditions are met)
  • Plus accrued penalties and interest until the balance is paid in full

After applying for a long-term payment plan, pay amount owed through non-Direct Debit (not automated) monthly payments, including payments directly from your checking or savings account (Direct Pay) or by check, money order or debit/credit card.
Fees apply when paying by card.

Revise an Existing Payment Plan (Installment Agreement) or Reinstate After Default

  • $10 fee, which may be reimbursed if you are identified as low income and certain conditions are met.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Who-pays-capital-gains-taxes-during-a-divorce-750x422
Written by Craig B

Who Pays Capital Gains Taxes During A Divorce?

Unless you’re a tax professional, chances are capital gains taxes during a divorce are confusing. There are many rules surrounding capital gains. Here are a few:

  • Capital gains taxes may occur when you sell an asset for a profit.
  • The percentage of capital gains taxes you owe depends on your tax bracket.
  • During a divorce, there is an exemption up to a certain amount on your primary residence, but you need to have lived there for a specific amount of time. Contact a professional for more information.
  • Financial investments (stocks, bonds, mutual funds, ETF’s) may have “unrealized” capital gains – which will be taxed upon sale. They should be taken into account when dividing these assets.

Navigating Capital Gains Taxes During a Divorce

Divorce can create a lot of confusion about your financial picture. You are dividing or signing over your rights to assets and navigating the complex process of who gets what. Things can get overwhelming quickly. If you have to sell the family home or other properties, you may be concerned about paying capital gains taxes. There are several questions that are helpful to ask a financial professional.

  • Which party is responsible for the capital gains taxes?
  • How do we clearly spell out who pays what?
  • How much will the capital gains taxes be?
  • Is there a more tax efficient way to handle the sale of our house(s)?
  • We’ve lived in the primary residence a long time, how much of the profit can each of us exclude from capital gains taxes?
  • Should we continue to co-own the home?

Each situation is unique. Consulting a financial professional can allow you to understand the benefits and consequences of your decisions. A professional will be able to review your situation and offer options, as well as the advantages and disadvantages of each. Navigating this situation with a professional can prevent miscommunication and allow each party to make informed decisions.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

2024 arizona tax brackets
Written by Craig B

Tax And Divorce In Arizona

Here is what you should know about divorce and filing taxes in Arizona so that you don’t make a penalty-incurring mistake. Read on to learn more

Divorce Attorney Fees And Taxes

Clients in divorce cases often want to know if attorney fees are tax deductible. Typically, the answer is no. The IRS does allow a minor exception for divorce attorney fees paid during “collection or production of gross income.” This clause doesn’t cover a majority of fees you would pay a divorce attorney. But you can ask your divorce attorney in Scottsdale whether the fees you pay are tax deductible.

Your Filing Status Determines Tax Liabilities

When you file your IRS form, you are given three options to choose from as your civil status: married, single, or head of household. Tax liabilities for each category slightly differs, so the box you check matters a great deal for your individual tax obligations. If the divorce is not yet final, it can be difficult to determine whether to file as a single person or jointly with your soon-to-be-ex. You can consult with a lawyer to decide what to do. Or you could calculate what you owe under all three categories and determine which is most advantageous to you.

Spousal Support and Child Support are Separate Categories

When filing your taxes, do not confuse alimony or spousal support with child support. Spousal support, which is sometimes referred to as alimony, is paid by one former spouse to another, for the benefit of the recipient. Child support, on the other hand, is paid to an adult who oversees the well-being of a child, but for the direct benefit of the child.

If you are a custodial parent recipient of child support, you don’t have to list it as taxable income. If you are the parent paying child support, you cannot obtain a tax deduction for the amount paid.

Spousal support works the other way. The individual who receives alimony payment must list it as taxable income. So it won’t affect this tax season but will start next year. Under a new law, alimony tax deduction is eliminated. The tax obligation is reversed. The spouse that pays the alimony will not be able to report a deduction, while the spouse that receives alimony no longer has to report it as taxable income.

Property Division May Be Taxed When Sold

When spouses divide property during a divorce, it is not a taxable act under the IRS Code. However, there’s a hidden clause called “tax basis” that might result in a tax payment. Tax basis is the purchase price of a property that is used to determine capital gains tax. Not all properties, such as a residence, incur capital gains tax following a divorce. However, certain property, such as investments, may incur capital gains tax when sold after a divorce.

For the most part, your divorce decree would determine how taxes should be paid for some property categories, such as IRAs.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

Stimulus Checks In 2022
Written by Craig B

When Will I Get My 2021 Tax Refund

The IR says Tax Season shall commence on February 12, 2021. Below are charts to show when you should expect your refund.

IRS Accepts E-Filed Return By: Direct Deposit Sent (Or Paper Check Mailed 1 week later):
IRS will start accepting income tax returns on Feb 12, 2021.
Feb. 16 Feb. 26 (Mar. 5)*
Feb. 22 Mar. 5 (Mar 12)
Mar. 1 Mar. 12 (Mar. 19)
Mar. 8 Mar. 19 (Mar. 26)
Mar. 15 Mar. 26 (Apr. 2)
Mar. 22 Apr. 2 (Apr. 9)**

* = Returns with EITC or CTC may have refunds delayed until March to verify credits.

** = Filing during peak season can result in slightly longer waits.

IRS Accepts Return By: Direct Deposit Sent (Or Paper Check Mailed one week later)
Mar. 29, 2021 Apr. 9, 2021 (Apr. 16)**
Apr. 5 Apr. 16 (Apr. 23)**
Apr. 12 Apr. 23 (Apr. 30)**
Apr. 19 Apr. 30 (May 7)**
Apr. 26 May 7 (May 14)
May 3 May 14 (May 21)
May 10 May 21 (May 28)
May 17 May 28 (June 4)
May 24 June 4 (June 11)

IMPORTANT: If you file electronically (using an online tax program or preparer), the IRS will notify you of the actual date they “accepted” your return. This is often 1-3 days from the time you actually hit the “file” or “submit” button, and it is this date that you need to use for the above chart.

Taxpayers who mail a paper version of their income tax return can expect at least a 3-4 week delay at the front-end of the process, as the return has to be manually entered into the IRS system before it can be processed.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

IRS Online Payment Plans 2022
Written by Craig B

What’s New For Tax Filing 2021

This is from IR-2020-272 published by the IRS on December 8, 2020 advising tax payers on new features when filing their taxes in 2021. Read on to learn more:

This year, there are some key items to consider involving credits, deductions and refunds:

Recovery Rebate Credit/Economic Impact Payment. Taxpayers who received an Economic Impact Payment, should keep Notice 1444, Your Economic Impact Payment, with their 2020 tax records. They may be eligible to claim the Recovery Rebate Credit on their tax year 2020 federal income tax return if:

  • they didn’t receive an Economic Impact Payment, or
  • their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018), plus $500 for each qualifying child they had in 2020.

If a taxpayer didn’t receive the full amount of the Economic Impact Payment for which they were eligible, they may be able to claim the Recovery Rebate Credit when they file in 2021. Individuals do not need to complete information about the Recovery Rebate Credit on tax year 2020 Form 1040 or 1040-SR when filing in 2021, unless eligible to claim an additional credit amount.

Interest on refunds taxable. Taxpayers who received a federal tax refund in 2020 may have been paid interest. Refund interest payments are taxable and must be reported on federal income tax returns. In January 2021, the IRS will send Form 1099-INT to anyone who received interest totaling $10 or more.

Charitable deduction changes. New this year, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For more information, read Publication 526, Charitable Contributions.

Refunds. The IRS always cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and processing may take longer. For example, the IRS, along with its partners in the tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud. Just like last year, refunds for tax returns claiming the Earned Income Tax Credit or Additional Child Tax Credit, cannot be issued before mid-February. This applies to the entire refund, even the portion not associated with these credits.

The IRS reminds taxpayers that the fastest and safest way to receive a refund is to combine direct deposit with electronic filing including the IRS Free File program. Taxpayers can track their refund using the Where’s My Refund? tool.

Tax Settlement in Mesa, Arizona

If you need IRS Debt Help, Tax Debt Settlements or Tax Debt Advising in Phoenix, Mesa or anywhere else, Tax Debt Advisors can help! Give us a call at 480-926-9300 or fill out our contact form for a free consultation.

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