Category: Tax Deadlines

Tax deadlines are easy to forget. However, missing one could cause to pay up to the IRS for unnecessary penalty fees. Our tax team will keep you informed on the dates that you should mark on your calendar. With our help, you’ll never miss a deadline date again!

If you have questions about specific tax deadlines, then leave us a comment! Our team will give you the answers you need.

Archive for the ‘Tax Deadlines’ Category

Free Tax Filing 2021

Posted by admin on February 24, 2022
Last modified: February 24, 2022

Ultimate Guide to Free Online Tax Filing and Free Federal Tax Filing

As things start to wind down for the year and 2021 comes to a close, it’s not too early to take a step back and make sure you have everything in order for the 2021 tax year. Setting aside just a few moments before year’s end to review your finances can pay dividends, metaphorically speaking, when the applications for free federal tax filing and free online tax filing come online next year.

First things first, remember that you file a tax return about what you earned in 2021 in 2022. Once 2022 comes around and the tax season starts, you’ll be looking back at the period from January 1 to December 31, 2021

So, what is one thing that should be on your financial checklist before we all ring in 2022?

Review your finances over the past year. Make a list of the documents, financial or otherwise, related to your income from 2021.

This includes documents related to your work, any investments you have, your health insurance, and any government assistance programs you’ve benefited from.

Paperwork you need to gather related to your income may include:

  • Form W-2
  • Form 1099-C “Cancellation of Debt” – Canceled debt is typically considered taxable income by the IRS.
  • 1099-G “Certain Government Payments” – These are forms related to unemployment income and state/local tax refunds.
  • Form 1099-MISC “Miscellaneous Income” – These are forms that may be sent to you related to a range of different types of non-employee compensation.
  • Form 1099-R “Distributions from Pensions, Annuities, Retirement, or Profit-Sharing Plans” – These are forms you may receive concerning payments/distributions from IRAs or other retirement plans.
  • 1099-S “Proceeds from Real Estate Transactions” – These are forms that will record income you earned from the sale of a property.

There’s more..

  • Forms 1099-INT, -DIV, -B, or Schedule K-1 – These are forms that will record your investment or interest income.
  • Form SSA-1099 – These are forms you will receive if you received Social Security benefits.
  • Documentation related to alimony payments you received
  • Documentation related to your business or Farming income, including profit/loss statement, capital equipment information
  • Info and Documentation related to any miscellaneous sources of income, such as jury duty, gambling winnings, Medical Savings Account, scholarships, etc.
  • Documentation related to installment sale information, including Forms 6252, principal and interest collected during the year, SSN, and address for payer
  • Documentation related to income and expenses from any rental property you own, including profit/loss statement, suspended loss information.
free tax filing 2021
free tax filing 2021

Paperwork and information you will need to gather that can help reduce your tax liability:

  • Form 1098-E “Student Loan Interest Statement” – These are forms for student loan interest paid. The loan statements for your outstanding student loans will also be relevant here.
  • Documentation related to alimony payments you paid
  • Info and Documentation related to any IRA contributions you made during the year
  • Documentation recording your contributions to your Health Savings Account (HSA)
  • Are you a student, or do you have student dependents? Form 1098-T for tuition paid and your receipts or canceled checks for tuition paid for higher education
  • Are you a teacher? Your receipts/canceled checks for expenses paid for classroom supplies, etc.
  • Are you an armed forces reservist, an employee with impairment-related work expenses,
  • .. or a fee-basis state or local government officials, or a performing artist? Your receipts/canceled checks for employee business expenses
  • Are you self-employed? Your records related to health insurance payments and payments in qualified self-employed pension plans such as SEP and SIMPLE

In short.

The paperwork you need will be the same for all options for free tax filing for 2021 tax returns. This is including if you take advantage of any of the free online tax filing options.

Having this information organized and to hand once 2022 arrives, and you begin to receive your financial documents. This ensures you have all the information you need when free online tax filing opens up for the 2021 tax year. What’s more, this will make you less likely to forget anything in your tax return. This will help you avoid triggering an unwanted audit from the IRS.

When can I start a free tax filing for the 2021 tax year?

Information about and the application for free federal tax filing and free online tax filing will come online in January 2022. So, keep an eye on the IRS “Free File: Do your Federal Taxes for Free”. Where all the details you need will be available.

Did you use a free online tax filing option in 2021 for your 2020 taxes? In which case, you may receive an email notification when their system has come online and is ready for submissions for the 2021 tax year.

Where can I find free federal tax filing options for the 2021 tax year?

Check the IRS “Free File: Do your Federal Taxes for Free” website in January to find options for free online tax filing with an IRS partner site or to use the IRS’s Free File Fillable Forms.

Remember that IRS Free File will only be available to file your current year tax return. Each year, the program runs from mid-January to mid-October. Once the 2022 tax season is over and the program closes for the year. If you still need to file your 2021 tax return you will need to file it as a prior-year return.

Visit PriorTax.com today for more helpful information about filing your taxes.

On our website’s Knowledgebase, you will find information on late tax filing. This answers many common general tax questions, and information on how to find the information you are looking for from the IRS or your local state’s revenue and taxation departments. Or keep up today with other posts on our Tax News Blog. Here you can find helpful and timely information about filing prior year taxes.

Use our helpful resources to be better equipped to take advantage of free online and free federal tax filing options next tax season. If you have a more complicated financial situation, we offer current year tax filing services in addition to our prior year services. We support you with unlimited live support by phone, chat, or email.

With our tools at your disposal, you can be confident that you are getting your taxes done right.

File 2020 Taxes Online to Efile

Posted by admin on December 21, 2021
Last modified: March 10, 2022

Filing 2020 taxes online via Efile for maximum 2020 tax return

2021 has been a busy and sometimes overwhelming year. And many of us are glad to see it finally coming to a close. If the 2021 tax season completely passed you by, you may be wondering about your 2020 tax return online and filing a return for your 2020 taxes. 

First things first, is filing my 2020 taxes still possible?

file 2020 taxes online
file 2020 taxes online

Yes, you can still file your 2020 tax return. However, the deadline for filing 2020 taxes on time was May 17, 2021. Or, if you got an extension, the deadline for filing 2020 taxes was pushed back to October 15, 2021.

Since these deadlines have passed, the IRS will consider your 2020 tax return to be late. However, they continue to accept prior year tax returns, including 2020 tax returns. The prior year tax services at PriorTax.com offer a cost-effective option to get up to date on your filing obligations. Preparing tax returns for previous years while helping you to ensure you are always filing following the right tax regulations for the right year.

Is it too late to file my 2020 tax return and receive my stimulus checks?

No, it isn’t too late to get the money available to you from the Economic Impact Payments made available to help people out during the pandemic. If you didn’t receive your stimulus checks, there is still time to claim your payments as a tax credit and receive this money as part of your tax refund.

The stimulus checks were an advance payment of a federal tax credit, the Recovery Rebate Credit. So, you’ll need to file your 2020 tax return to receive your first- and second-round stimulus checks to receive this credit. And if you received your checks but less than the full amount, by filing your 2020 taxes, you may be eligible to claim the Recovery Rebate Credit.

Can I still file my 2020 taxes online?

Since the deadline for filing 2020 taxes has now passed, your 2020 tax return is now considered a prior year return. That designation comes with a few restrictions imposed.

You’re only able to make use of the IRS’s Free File program that lets people file their 2020 taxes online until the deadline. If you use a self-preparation website to file your 2020 taxes online, you will be able to prepare your tax return paperwork online. However, once it’s ready to send off to the IRS, you will need to print, sign, and then mail off your 2020 tax return to the IRS.

If you’re looking to file your 2020 taxes entirely online, consider using PriorTax.com’s CPA Review option, available when filing your 2020 taxes with us. By opting for a CPA Review, you receive a personalized consultation with one of your certified public accounts. They will help you take maximum advantage of all of the deductions and credits for which you may be eligible, helping to reduce your tax bill or boost your tax refund. Additionally, as tax preparers registered with the IRS, they can assist with e-filing your 2020 taxes.

What happens if I am late filing my 2020 taxes?

If you are late filing your 2020 taxes and are expecting a tax refund for 2020 taxes that you overpaid, you are leaving money on the table by not filing. You have three years from the original deadline to file your return and claim your refund.

If you are late filing your 2020 taxes and you owe the IRS money, the agency imposes financial penalties for late filing and for late payment of taxes. Unfortunately, these can make your tax bill even higher. That’s because you will start to accrue interest on your unpaid tax bill from the day following the filing deadline. This interest compounds daily, which can add up.

However, even if you’re not currently in a place financially where you can pay your full unpaid tax bill, it’s often a good idea to file your 2020 tax return sooner rather than later. The late filing penalty usually works out more expensive than the late payment penalty, so it is in your interest to limit the late filing penalty from adding up.

Why can going back and filing my 2020 taxes even if I don’t owe any money be a good idea?

If the IRS owes you a refund for your 2020 tax return, by going back and filing your 2020 taxes, you can receive your refund. There’s a deadline, and you’ll need to claim your refund within three years of the original deadline to file your return. So, you have until April 15, 2024 to claim your refund on your 2020 taxes. After that date, any unclaimed excess taxes paid by U.S. taxpayers go to the U.S. Treasury.

Before filing your 2020 taxes, you can visit the 2020 Tax Calculator on PriorTax.com to calculate your refund amount. There you will find free prior year tax calculators for 2011 to 2020. These are available to help provide a personalized view of income tax returns for any of the past tex tax years. Our tax calculators are entirely anonymous and don’t require an online account or entering any identifying personal information to use.

Additionally, because of the 2020 Recovery Rebate Credit and specific to filing 2020 taxes, if you did not receive the first and/or second Economic Impact Payments or think you qualify for more than you received, it can be a good idea to file your 2020 tax return. If you’re eligible for the 2020 Recovery Rebate Credit, you’ll need to file your return to claim it, even if you wouldn’t otherwise have a filing obligation.

Still need to prepare and submit your 2020 tax return? No need to panic!

Visit PriorTax.com today to learn how we can help you get up to date and how you can prepare to file your 2020 taxes online using our safe, secure, and easy-to-use system. Our experienced tax professionals can help you prepare your 2020 tax return with confidence. They are available to answer any questions you have along the way.

eFiling 2020

Posted by admin on December 15, 2021
Last modified: January 11, 2022

Efiling 2020 tax and IRS Efile tax

What is the IRS’s Efile Program?

The IRS offers e-filing options that allow for the speedy and secure submission of tax returns online, including the individual income tax returns that many of us need to file each year.

There are a few different efiling 2020 options available when preparing your individual income tax return:

efiling 2020 tax
e-filing 2020 tax
  • IRS Free File allows for free e-filing of federal tax returns. If your income is $72,000 or below, you can take advantage of offers with IRS partner sites – some of these will include free state tax filing too. Regardless of income level, there are also the IRS’s Free File Fillable Forms. These allow for electronic preparation and filing for those who are comfortable doing their own taxes.
  • In-person Free Tax Return Preparation Sites like VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) offer free tax assistance and e-filing for qualifying taxpayers.
  • Commercial Software and Online Services can help guide you through the process of preparing and submitting your tax return. Fees will typically depend on the complexity of your financial situation. This option also allows for electronic preparation and filing.
  • Tax Professionals can help guide you through the process of preparing and submitting your tax return, with more support and while answering any questions you may have.

Visit PriorTax.com today to learn about our online tax filing services and how we offer support at the intersection of online and personalized tax services.

What are the benefits of IRS e-file Tax?

There are three main benefits to using IRS e-File:

IRS E-file Tax Increases Convenience

  • Increased Convenience: Using IRS e-File to file your tax return, you can avoid needing to make copies of your return and documents, visit the post office, and pay for postage.

IRS E-file Tax Increases Accuracy: 

  • Increased Accuracy: Using IRS e-File, you can minimize and avoid errors and miscalculations that can happen when manually filling out your tax paperwork. There are built-in accuracy checks, and the system can do calculations for you. Whether this goes beyond the basic calculations will depend on which option you choose. IRS e-File also avoids the chance for data-entry errors on the IRS’s end since they don’t need to re-enter your information into their system.

IRS E-file Tax Increases Speed of Processing

  • Increased Speed of Processing: Using IRS e-File, you can receive acknowledgment of your filing in 24 hours or less, often in near real-time. No need to wait for your paper return to arrive at the IRS or the system processing cycle. Faster processing also means that if you are owed a refund from the IRS, that will be processed faster. Faster money back in your wallet. Combined with requesting your refund direct deposited to your designated bank account is the quickest route to a speedy tax refund.

Is IRS e-file safe?

IRS eFile uses encryption technology to make sure that all tax returns are protected and secure. To date, more than a billion tax returns have been e-filed and processed securely and safely. In addition, the IRS works with both states and tax industry leaders to ensure the continued security of the system.

When looking to use IRS eFile, make sure to use a reputable service. The IRS maintains a database of authorized e-file providers who are qualified to prepare, transmit and process e-file returns. It’s essential to do due diligence to ensure you are working with a reputable tax professional.

I need to amend my tax return. Is e filing my 2020 or 2019 return possible?

Yes. eFiling 2020 of Form 1040-X ‘Amended U.S. Individual Income Tax Return’ is available for both the 2020 and 2019 tax years. However, you need to have e-filed your original 2020 or 2019 tax return to be able to take advantage of this option. 

Paper filing continues to also be an option for filing Form 1040-X. You can visit the IRS website to confirm the mailing address for mailing your Form 1040-X, which will differ depending on your situation and where you live.

After efiling my 2020 amended tax return, how can I check up on it?

The IRS website offers a “Where’s My Amended Return?” tool that can be used to check on the status of your amended return. This tool can be used for this year as well as the three prior years. You’re able to use this tool both if you prepared and submitted a paper Form 1040-X and if you filed electronically.

I haven’t filled my 2020 tax return yet. Is efiling my 2020 federal taxes still possible?

The IRS’s deadline to file 2020 tax returns has now passed, both the regular deadline (May 17th) and the extended deadline (October 15th) if you filed for an extension by May 17th. The main thing this means for you is that your 2020 tax return is now considered a prior year return.

There are some restrictions for prior year returns.

  • Only current year tax returns can be filed using the IRS Free File program.
  • E-filing isn’t available for prior year returns, like 2020 tax returns, when you use a self-preparation website. That means you would need to print and sign, then mail off your 2020 tax return.

However, as a registered tax preparer with the IRS, at PriorTax.com, we can assist with efiling 2020 tax returns. Just choose the CPA Review option when you file your 2020 tax return with us.

With a CPA Review, you will receive a personalized consultation with one of our certified public accounts. They are available to help you maximize your eligible deductions and credits to either boost your tax refund or reduce how much tax you owe.

Visit our website today to learn more about our full suite of services, including CPA Review. We’re here to help!

After Efiling my 2020 tax return, how can I check up on it?

The IRS website offers two options, the “Where My Refund?” tool and the IRS2Go app. You can use either option to check on the status of your tax return. To use these tools, you will need:

  • your social security number or ITIN (individual taxpayer identification number),
  • your filing status, and
  • your exact tax refund amount.

Reach out to us for Free Tax Online Support with 4.8 stars for customer service satisfaction.

2019 Tax Return

Posted by admin on December 1, 2021
Last modified: December 1, 2021

How to File 2019 Taxes

The deadline to file your 2019 tax return on time may have already passed. But if you’ve been putting off filing, there is no better time to file than today.

Don’t put off filing any longer, even if you aren’t currently in a position to pay off your tax bill. By filing your 2019 tax return today, you will be able to minimize the amount you will eventually have to pay. In addition to interest on unpaid taxes, the IRS also has late filing and late payment penalties. Filing your 2019 tax return can stop the filing penalties from racking up, which is good news that can save you money. In most cases, late filing penalties will work out to be larger than equivalent late payment penalties.

And if you overpaid and are owed a tax refund, by filing your 2019 tax return today, you will be able to claim your refund before it’s too late and ends up in the U.S. Treasury.

2019 tax return
2019 tax return

So, How to File your 2019 Taxes?

The first step to filing your 2019 taxes is to check whether you needed to file a tax return for the year.

The IRS sets thresholds for minimum gross income filing requirements.

For the 2019 tax year:

  • The threshold for a single person under 65 years old was $12,200
  • The threshold for a head of household was $18,350
  • The threshold for self-employed income was $400 in net earnings

If you made less than this threshold, you typically don’t need to file a return except in special circumstances. However, if you think this may be your situation, contact us today and we can help you figure it out.

Gather your documents.

You will need to gather your documents together, particularly those related to your income, any interest you earned, already withheld taxes, and loan payments.

Next, determine which deductions and credits are relevant to your situation in 2019.

Each year, there are deductions and credits available that can help reduce your taxable income and, ultimately, the amount of tax you owe. Our tax application can help guide you through this process to help you file your return with ease.

A few things to keep in mind:

  • Will you be itemizing deductions for your 2019 tax return? You need to collect all the relevant documentation to support each deduction taken.
  • Will you be claiming any dependents on your 2019 tax return? You will need to have their names and social security numbers on hand to identify them to the IRS in your paperwork.

You now need to identify and obtain the correct tax forms you will need to file.

Tax forms are year-specific and change annually, as changes are made to laws and regulations. Therefore, you’ll want to ensure that you file your 2019 tax return using the forms for the 2019 tax year.

Fill out your required tax forms.

In addition to year-specific versions of the tax forms, there are also instructions that are specific to each year’s version of the paperwork. So make sure that you have the 2019 tax year instructions as well as the forms themselves during this process.

The tax form instructions will also guide you on the documents you will need related to your financial and personal circumstances.

And finally, mail off your 2019 tax return, supporting documents, and payment if necessary.

Finally, you are at the point where you can mail off your 2019 tax return. Send it to the applicable address that can be found in the filing instructions. According to the IRS, it will take approximately six weeks for them to process prior-year tax returns, like your 2019 tax return, after receiving them.

How to Re-File your 2019 Taxes

If you already filed your 2019 tax return but realized that you made a mistake or missed out on a tax deduction or credit, you can re-file your 2019 taxes by filing an amended tax return with the IRS.

Some common situations when you might want to file an amended tax return include:

  • not claiming a tax deduction or credit you were eligible for
  • claiming an expense or tax deduction or credit you weren’t actually eligible for
  • claiming the wrong tax filing status
  • needing to either add or remove a dependent from your return
  • no including all taxable income on your return

First, gather your documents.

You’ll need your original 2019 tax return. In additional, you’ll also need any new documents like corrected W-2 or 1099 forms or financial documents for any tax deductions or credits you didn’t claim the first time around.

Next, you need to identify and obtain the correct tax forms you will need to file.

To file an amended tax return, you need Form 1040-X. In addition to this form you will also need the forms that are for each aspect of your return that will be impacted by the changes you wish to make.

Since tax forms are year-specific you will need to make sure that you are locating the forms for the 2019 tax year.

And finally, fill out and then submit your amended forms.

Starting with the 2019 tax year, Form 1040-X can be filed electronically if you e-filed your original 2019 tax return.

The IRS also still accepts paper filing. So you can also mail in your amended 2019 tax return. If you didn’t e-file your 2019 tax return the first time around, you will need to go this route and mail in your amended 2019 tax return.

If you still need to prepare your 2019 tax return, visit PriorTax.com and contact our customer service today. Our tax application is designed to make sure you know how to file your 2019 taxes with ease. In addition, we can help you if your 2019 tax return needs to be amended, whether you filed your original return with us or not. Call us today!

We’re here to help you file your 2019 tax return and any other prior year taxes you still need to file, so don’t wait any longer to get your back taxes in order.

Prior Year Tax Return

Posted by admin on November 22, 2021
Last modified: November 22, 2021

What is a “tax year” and a “tax season,” and what is the difference?

The “tax year” in the United States refers to the twelve-month period to be used when determining your taxable income and any tax-deductible expenditures.

For most individual taxpayers, this runs from January 1 to December 31 for any given year. This is the year-long accounting period when you either pay or withhold taxes, keep your paper and digital records, and report your income and expenses. 

On the other hand, the corresponding “tax season” refers to the period from January 1 until April 15 of any current year to prepare and electronically file your tax return. It ends on the due date for filing your tax return.

Extensions for filing your tax return are possible, which can give you an extra six months to prepare and file your tax return. This is why you sometimes see the tax season described as from January 1 until October 15.

So for the 2020 tax year, you would have from January 1, 2021 to April 15, 2021 to prepare and file your tax return on time. If you file for an extension, you would have from January 1, 2021 to October 15, 2021 to prepare and file your tax return on time.

prior year tax return
prior year tax return

Who needs to file taxes?

Each year, the IRS sets thresholds for minimum gross income. If you make less than this threshold, you don’t need to file a tax return unless there are special circumstances, and if you make more, you need to file your tax return.

For the 2020 tax year, this means that typically if you are a single person under 65 years old, you don’t need to file a tax return in 2021 if you made less than $12,000. Likewise, if you are the head of your household, you typically don’t need to file your tax return in 2021 if you made less than $18,650.

Is there a deadline to file prior year taxes?

If you expect a tax refund, you have three years from the original tax return deadline to file your prior year tax return and claim your refund. When you are eligible for a tax refund, there is no worry about penalties here.

If you owe taxes, there is no deadline to file a prior year tax return. However, you should be aware of late filing and late payment penalties from the IRS in this case.

In most instances, the IRS requires individuals to file their tax returns for the last six tax years, if required to file, to be considered squared away and in good standing with the IRS.

Can you still claim a refund when you file a prior year tax return?

Yes, it is possible to claim a refund for a prior year tax return if you are eligible. For most circumstances, you are eligible for a tax refund when you have paid more tax during a given tax year than you actually owe.

However, there is a deadline to claim a tax refund. You will need to make your claim for a refund within three years of the original deadline to file your tax return.

So you have until April 15, 2023 to claim a refund on your 2019 taxes. You have until April 15, 2022 to claim a refund on your 2018 taxes. And you had until May 17, 2021 to claim a refund on your 2017 taxes. (In 2021, the IRS automatically extended the last day to file your taxes to May 17.) Use our Tax Calculator to get a better idea of your return

After the deadline, any unclaimed amount of excess taxes paid goes to the U.S. Treasury.

If you believe you are owed a refund from the IRS for prior year tax, don’t wait any longer to get your back taxes in order. PriorTax can help you get your prior year tax taken care of today.

Why is it a good idea to file prior year taxes even if you cannot pay right now?

The IRS has both late filing and late payment penalties for when you did not file a tax return when you needed to do so. In addition, your outstanding prior year tax balance continues to accrue interest each month that you let it go unpaid.

However, in most cases it is a good idea to file your prior year taxes even if you are not in the position to pay all of what you owe right now. This is because the IRS’ late filing penalty will usually work out to be larger than their late payment penalty.

If you owe a significant amount to the IRS but cannot pay the full balance, you should still file your prior tax returns. You should then get in touch with the IRS to work out a payment plan so that you can pay it off according to what you can afford.

Filing your prior tax returns can stop the more considerable filing penalties, and with a payment plan in place, you can avoid more severe collection enforcement for your unpaid tax bill.

To get help getting your prior year tax returns in order, get in touch today. First, you pick the tax years you want to file. Then we help you to file your tax returns, answer any questions along the way, and review and prep the documents for you to download, print, sign, and mail off.

How do I obtain my prior tax returns?

There are times when you cannot obtain copies of your tax documents, like W-2 forms from employers or 1099 forms from your bank or for your other sources of income. In that case, you can request a free tax transcript from the IRS summarizing your return information. They are available for the current tax year and for the past three years.

However, there are also times when you need an actual copy of your prior tax returns rather than a summary. Then, in that case, you can request them from the IRS for a fee. They are available for the current tax year and for the past six years.

2020 Tax Calculator

Posted by admin on November 16, 2021
Last modified: November 16, 2021

Taxes can feel complicated and opaque a lot of the time. But use a tax calculator to find out whether you owe the IRS or if the IRS owes you a refund and to find out how much money is involved.

If you haven’t yet filed your tax return for 2020, a tax refund calculator can be a good step so that there are no surprises as you prepare your tax return. The 2020 tax refund calculator asks you a few questions regarding your personal situation, income, and expenses during 2020. Using this information, 2020 tax calculator will give you an estimate of how much of a refund to expect from the IRS or how much of your tax bill to the IRS is still outstanding.

With your tax documents on hand, visit PriorTax.com and use our 2020 Tax Calculator to find your tax refund or bill today. On our website, you will discover tax calculators for each year going back to 2011. Each one has been designed to ensure you are getting accurate estimates based on the relevant laws for that year.

Is the 2020 Tax Calculator safe to use?

Using the 2020 Tax Calculator on PriorTax.com is entirely anonymous and doesn’t require an online account to use. You don’t need to enter any identifying personal information to use it.

What do I need to use the 2020 Tax Calculator?

Our online tax calculators can only be as accurate as the information you enter. So, how can you get the most accurate estimate of your tax refund or tax bill possible? Have your relevant tax and financial documents by your side and refer to them.

These things can get busy quickly. So, when you open the 2020 Tax Calculator, you’ll see that we have divided the needed information into three sections to make filling it out straightforward and user friendly.

  • Family: Use this section to input your personal details (minus any identifying information)
  • Income: Use this section to input any income you received as an employee or while unemployed or from investments, retirement funds, self-employment, or other business activities. This section is also for any miscellaneous income such as Social Security benefits, withheld taxes from benefits, alimony payments received, gambling winnings, etc. 
  • Deductions and Credits: Use this section to input information used by the 2020 Tax Calculator to determine your eligibility for any deductions or credits. Relevant information includes:
    • household and unreimbursed work expenses as an employee
    • education expenses
    • donations of cash or property
    • retirement plans
    • any tax payments made during the year

Are you missing your 2020 stimulus checks?

The first two rounds of Economic Impact Payments that went out in 2020 were, in fact, advance payments by the U.S. Government of the 2020 Recovery Rebate Credit. That’s why our 2020 Tax Calculator asks in the Family section for the amount you received for the 1st and 2nd Recover Rebate Payments. You can find the amounts for your first and second payments to fill out these two fields either by viewing your IRS online account or referring to the letters sent by the IRS, Notice 1444 and 1444-B.

Most people who were eligible already received their 2020 stimulus payments. Did you not receive your payments or did you get less than the full amount? You may be able to claim the 2020 Recovery Rebate Credit on your 2020 tax return. Note that any already issued Economic Impact Payments reduces the amount of 2020 Recovery Rebate Credit taxpayers are eligible for.

If your income was more than $12,400 in 2020 (or more than $24,800 if you are married), to claim any missing stimulus payments, you need to file a 2020 tax return.

Next Steps… on 2020 Tax Refund Calculator

Do you have a large tax refund coming your way or a large tax bill to pay according to the 2020 tax refund calculator? In that case, it may be a good idea to check on your withholding status.

The IRS website offers a Tax Withholding Estimator, which you can use to complete a new Form W-4 and ensure that you don’t have too much or too little tax withheld from each paycheck.

Use the information you gathered together to use the 2020 tax refund calculator along with any changes that you currently anticipate for filing your 2021 tax return to work through the Tax Withholding Estimator. This web calculator compares your current total taxes being withheld to an estimate of your actual tax obligation. It will let you know if too little or too much of your paycheck is being withheld and then provide the information you need to fill out Form W-4 to adjust your withholding.

What is Form W-4?

Form W-4 is also known as the ‘Employee’s Withholding Certificate’. Your employer uses this form to make sure that the correct amount of federal income tax is withheld from your paychecks.

When do you use Form W-4?

You most often get asked to fill out this form when you switch or get a new job. However, it can be a good idea to check out your withholding status and fill out a new Form W-4 when you have any changes to your personal or financial situation that can affect your taxes. 

After you used a 2020 tax calculator to estimate your federal tax obligations, do you find yourself owing a large tax bill to the IRS, or does the IRS owe you a large tax refund? These may be signs that you need to fill out a new Form W-4 so that your employer can adjust that amount of tax they are withholding from your paychecks.

How can I benefit from filling out a new Form W-4?

A more accurate Form W-4 will help to avoid any unexpected tax bills when you file. It could mean more money in your pocket each pay period if you were having too much of your paycheck withheld for tax obligations. In addition to smaller take-home pay, when your withholding is too high, you aren’t earning any interest on the amount that you are overpaying to the IRS.

Can I Still File My 2019 Taxes

Posted by admin on November 9, 2021
Last modified: November 9, 2021

Have you recently wondered, can I still file my 2019 taxes electronically or file them at all?

Now that it’s October, you may be seeing reminders popping up online, in the news, or on TV about filing your tax returns for the year. That’s because, just like April 15 each year, October 15 is also a tax filing deadline.

April 15 is the annual deadline to file federal income tax returns for the previous calendar year.

October 15 is the annual extended deadline to file federal income tax returns for the previous calendar year.

You can file for an extension before the April 15 filing deadline. Then, you have until the October 15 deadline to file your tax returns before you become liable for late fees or additional interest.

With these current deadlines for 2020 taxes on the horizon, if you didn’t file a tax return for your 2019 taxes, you may be wondering if it is too late. Can I still file my 2019 taxes electronically? Or can I still file my 2019 taxes at all?

file 2019 taxes
file 2019 taxes

So, can I still file my 2019 taxes?

Yes, you can still file my 2019 taxes. And there are many reasons why it can be a good idea to file my 2019 taxes at this point.

While the deadline to file your 2019 taxes on time was July 15, 2020, there is no deadline to file your prior year’s taxes. However, there are some dates you need to be aware of if you think you are owed a tax refund — more on that in a bit.

If you made more than the minimum gross income set by the IRS for the 2019 tax year, you could benefit from filing my 2019 tax return, even if late. This is true both if you can expect a tax refund or if you owe taxes. You can use our 2019 Tax Calculator to calculate your estimated expected tax refund or tax bill.

The minimum gross income threshold set by the IRS takes into account four different factors:

  • if you are claimed as a dependent by someone else
  • if you are married or single
  • your age
  • if you are blind

For the 2019 tax year, if you were a single person under 65 years of age, this worked out to you in most cases not needing to file a tax return in 2020 if you made less than $12,200. If you were the head of your household, you typically weren’t required to file your 2019 tax return in 2020 if you made less than $18,350.

If you still need to file your 2019 taxes, get in touch today. PriorTax.com can help you file your prior tax returns and answer any questions you may have during the process. We can review and prep your documents for you to download, print, sign, and mail off.

FILE PRIOR YEAR TAXES

Posted by admin on November 3, 2021
Last modified: November 3, 2021

Don’t stress about how to file prior year taxes. It is a step-by-step process that you can follow to file your prior year tax returns with confidence. Getting on top of filing prior year taxes may be easier than you think.

Filing your prior year taxes may also have the added benefits, including: 

  • helping you claim tax refunds owed, 
  • protecting your social security benefits if you’re self-employed, 
  • and avoiding issues when looking to get a loan approved from your bank.
file prior year taxes
file prior year taxes

What Do You Need to File Prior Year taxes?

Like when filing your tax return normally, to file prior year taxes, you will need to collect all of your income information for the tax year you are preparing your return.

These would include documents such as W-2 forms with information about your wages, salaries, and tips and 1099 forms for your other sources of income like bank accounts or self-employment income.

You may also need your AGI (adjusted gross income) amount from your prior year tax return to validate your identity for filing your taxes online.

When these tax records are missing, and you cannot obtain copies, you can request a free tax transcript from the IRS, which will summarize your return information, including AGI. Tax transcripts are available going back to the past three tax years. To obtain tax transcripts, you can order them via the IRS website, via phone, and via mail by completing and mailing Form 4506-T or Form 4506T-EZ.

An actual copy of a prior tax return can be requested from the IRS, going back even further than the past six tax years. However, they are only available for a fee. To obtain copies, you need to complete and mail Form 4506.

With your documents in order and the required information to hand, it’s now a question of how to file prior year taxes for each year you are looking to file.

1. Figure out if you were required to file a tax return for each year you are looking into filing your prior year taxes.

For each tax year in question, take a look at the threshold for minimum gross income set by the IRS. Depending on your personal circumstances and annual gross income for each year, the IRS may not have required you to file a tax return for that year.

2. Figure out what deductions and credits are relevant to your situation.

Deductions and credits will help to reduce your taxable income and are still relevant even when filing prior year taxes.

  • If you are itemizing deductions on your prior year tax return: you will need to collect the relevant documentation to support each deduction.
  • If you are claiming dependents on your prior year tax return: you will need the names and social security numbers for each of your dependents.

3. Obtain the correct tax forms for your return and for the tax year you are filing.

Tax forms are year-specific. So, prior year tax returns will need to be filed using the original tax forms for the specific year. You will also need to identify which documents you need for your financial and personal circumstances.

4. Fill out your tax forms.

Tax forms will come with instructions specific to that year’s version of the form. Therefore, when filing prior year taxes, it’s essential to make sure that you are using the instructions for the specific year that you are filing your return.

5. Mail off your tax return and supporting documents.

The address that you will need to send your paperwork to appears on the filing instructions. The IRS states that it takes them approximately six weeks to process completed prior year tax returns after they receive them. 

What Years’ Prior Tax Return Can be Filed?

If you are expecting a tax refund: You have three years from your original deadline to file prior year taxes and claim your refund. This means that you have until April 15, 2023 to claim your refund for your 2019 taxes overpaid. And you have until April 15, 2022 to claim your refund for you 2018 taxes overpaid . And you had until May 17, 2021 to claim your refund for your 2017 taxes overpaid.

If you owe taxes: You have no deadline to file prior year taxes. However, it is usually a good idea for you to file prior year taxes in this case. This is even if you are not currently in a position to pay your full unpaid tax bill.

The IRS has both late filing and late payment penalties, which make your tax bill even higher. Three things are good to know here:

  1. You aren’t penalized twice if you don’t file prior year taxes or pay the corresponding prior year tax bills.
  2. You begin to accumulate interest that compounds daily on your unpaid tax bill from one day after the bill was due.
  3. The IRS’s late filing penalty typically works out most costly than their late payment penalty. The late filing penalty is 5% of the taxes you owe for each month unpaid plus interest compared with 0.5% of the taxes you owe for each month outstanding plus interest.

Visit us today if you are looking to file prior year taxes online. Don’t wait any longer to get your back taxes in order because PriorTax can help guide you through the process if you don’t know how to file prior year taxes.

Our application guides you through the filing process with simple prompts to learn about tax and financial situations. PriorTax answers any of your questions along the way and reviews and preps your documents for filing. 

Did you miss the deadline to file your current year taxes? You have until October 15 to fully file your tax return online, from prepping all the way to e-filing. However, you can’t use e-file when you file prior year taxes from 2019 and earlier. But, with us, you can file prior year taxes online right up to the point when you print, sign, and mail it off.

FILE 2019 TAXES

Posted by admin on November 3, 2021
Last modified: November 8, 2021

The deadline to file your 2019 taxes on time may have passed. However, it’s not too late to get on top of the paperwork and file your 2019 taxes. Plus, filing your prior year’s taxes can be easier than you think.

While it’s not too late to file your 2019 taxes, it is now too late to file your 2019 taxes online using e-file. Instead, you will need to mail in a hard copy of your tax return to file your 2019 taxes. The deadline to use e-file to file your 2019 taxes online was October 15, 2020.

Although you can no longer file your 2019 taxes online, there are options available for you to prepare your tax return online. Visit PriorTax.com today. We can help you prepare your 2019 tax return online, reviewing and organizing your documents to be downloaded, printed, signed, and mailed off to the IRS. In addition, our experienced tax professionals can answer any questions you may have along the way.

Now that you’ve decided to get back on track with your tax filing obligations, where to start? The first step to filing any prior-year tax return, including your 2019 taxes, is to gather all the information you will need.

So, what information will you need to file your 2019 taxes?

file 2019 taxes
file 2019 taxes

What you’ll need can be broken down into three broad categories: your personal information, information about your income, and any adjustments to your income. Let’s take each of these in turn.

Personal Information to file 2019 taxes online

This category contains information to help the IRS process your tax return. The IRS needs to match the file of your 2019 taxes to you, know who your tax return includes, and then know where to deposit your tax refund if applicable.

  • Birthdates and Social Security or other Taxpayer Identification Numbers for you, your spouse, and your dependents
  • Copies of last year’s tax returns are helpful but not required
  • Your bank account number and routing number, if you want to receive any tax refund by direct deposit

Information about your Income to file 2019 taxes online

This category contains all the information you will need to fill out the income section of your 2019 tax return. The most common document will be the W-2 form known as the “Wage and Tax Statement” that you received from your employer. Other forms of income include self-employment income, dividends, royalties which will have their own documents.

Here’s a checklist of the relevant income paperwork and information you may have:

  • Form W-2
  • Form 1099-C “Cancellation of Debt” (the IRS generally considers canceled debt as taxable income)
  • Form 1099-G “Certain Government Payments” (forms for unemployment income and state/local tax refunds)
  • Form 1099-MISC “Miscellaneous Income” (forms you may receive for a range of different types of non-employee compensation)
  • Form 1099-R “Distributions from Pensions, Annuities, Retirement, or Profit-Sharing Plans” (forms for payments/distributions from IRAs or retirement plans)
  • Form 1099-S “Proceeds from Real Estate Transactions” (forms for income from the sale of a property)
  • Forms 1099-INT, -DIV, -B, or K-1 s (forms for investment or interest income)
  • Form SSA-1099 (forms for if you received Social Security benefits)
  • Alimony payments received
  • Business or Farming income: profit/loss statement, capital equipment information
  • Miscellaneous Sources of Income: jury duty, gambling winnings, Medical Savings Account, scholarships, etc.
  • Installment Sale Information: Forms 6252, principal and interest collected during the year, SSN and address for payer

Income and Expenses from Rental Property: profit/loss statement, suspended loss information

Adjustments to your Income to file 2019 taxes online

This category contains the information about your expenses that will help you calculate your Adjusted Gross Income or AGI. This information can reduce the amount of your income that the IRS considers taxable. This can help increase your tax refund or lower the amount of your tax bill still outstanding.

  • Form 1098-E “Student Loan Interest Statement” (forms for student loan interest paid, loan statements for student loans are also relevant here)
  • Alimony payments paid
  • Records of any IRA contributions made during the year
  • Records of Health Savings Account (HSA) contributions
  • For Students and Student Dependents: Form 1098-T for tuition paid (receipts/canceled checks for tuition paid for higher education are also relevant here)
  • For Teachers: receipts/canceled checks for expenses paid for classroom supplies, etc.
  • For armed forces reservists, employees with impairment-related work expenses, fee-basis state or local government officials, and specific categories of performing artists: receipts/canceled checks for employee business expenses.

If you are self-employed:

  • Records of self-employed health insurance payments
  • Records of payments into SEP, SIMPLE, and other qualified self-employed pension plans

Itemizing your Tax Deductions to file 2019 taxes online

While filing your 2019 taxes, just like in any other tax year, you have the choice to either take the standard deduction or to itemize your deductions.

The standard deduction is a preset amount that taxpayers are allowed to deduct from their taxable income annually. The standard deduction amount will depend on your filing status, and to keep up with inflation, it is annually indexed.

Depending on your personal situation, itemizing your deductions and credits may help you to lower your tax bill more than standard deductions. This can be especially true for high earners who also have several large expenses to deduct. To itemize your deductions, you will need to collect documentation detailing expenses so that you can be sure you are getting all the deductions and credits to your tax bill that you are eligible for.

What can you do if you are missing some of the tax documents you need to file 2019 taxes?

There can be a lot of paperwork and digital files to keep track of to file your taxes. Have you lost some of your documents? Fortunately, for the times when you cannot obtain new copies of your tax documents, there is a backup available. In such cases, you can request a free tax transcript from the IRS. This document will summarize your return information. 

Free tax transcripts from the IRS are available for the current tax year and the past three years. So, you have until 2023 to request a free tax transcript for the 2019 tax year.

What’s New for the 2020 Tax Year?

Posted by Manisha Hansraj on January 15, 2021
Last modified: January 18, 2021
2020 tax year

Here’s the breakdown of all the changes.

Standard deduction

For the 2020 tax year, the standard deduction amounts have increased. Here are the amounts below.

  • Single or Married filing separately – $12,400
  • Married filing jointly and Qualifying widow(er) – $24,800
  • Head of Household – $18,650

For taxpayers who are blind or at least 65 years old, they can claim an additional standard deduction. The standard deduction is $1,300 and $1,650 for the single or head of household filing status.

Taxpayers who are both blind and of eligible age receive a doubled additional standard deduction.

Recovery Rebate Credit (Stimulus Payment)

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