Having all information available when preparing the 2021 tax return can reduce errors and avoid delays in processing. To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners.
Tax deductions help lower the amount of your income that can actually be taxed. Some deductions are only available if you itemize your deductions, while others are still available even if you decide to take the standard deduction. You will, however, need to estimate your tax liability, even if you tax season haven’t calculated it. And you’ll have to pay any owed taxes on that estimate by the regular deadline. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes,” the tax agency announced in a statement.
Depending on your income, your filing status and number of dependents, the credit could save you anywhere from a few hundred to a few thousand dollars on your taxes. The closest things to magic words when it comes to taxes are deductions and credits. Both help you keep more money in your pocket instead of Uncle Sam’s, but in slightly different ways. For the 2024 tax season, the standard deduction went up to adjust for inflation. To get a good idea of just how much the standard deduction increased, let’s compare the 2024 standard deduction to the numbers we saw in 2023.
It keeps things simple, sparing us the headache of reporting every latte or concert ticket we Venmo’d over the past year. As we edge closer to Tax Day, there’s a whirlwind of changes and updates to keep on your radar. Thankfully, Karla Dennis, a tax expert and founder of KDA, Inc., is here to help us sift through the noise and highlight the most impactful shifts in this year’s tax landscape.
This tax calendar can help you be aware of some of the approaching deadlines. You’ll need basic information, like your name, address, Social Security number, estimated tax liability, and payment if you owe anything. Individuals and businesses affected by Hamas’ attacks in Israel now have until Oct. 7 to file their taxes. If you file an extension (which you’ll need to do by April 15), you’ll have until Tuesday, Oct. 15, 2024 to file taxes. If you plan to file directly, you might consider creating an account at IRS.gov/account, where you’ll find useful information about filing.
To learn more about what Congress is discussing, see Kiplinger’s coverage of the bipartisan tax deal. However, the agency said the website and app “will be updated with projected deposit dates for most early (Earned Income Tax Credit/Additional Child Tax Credit) refund filers by February 22.” Because the government didn’t distribute stimulus checks in 2022, you won’t need to worry about receiving letters from the IRS or claiming a recovery rebate credit.
