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Category: Tax Deductions and Credits

Deductions and credits may be similar but they are far from identical when it comes to your tax return. A tax deduction is a qualifying expense that decreases your taxable income. On the other hand, tax credits allow taxpayers to reduce their tax due to the IRS, dollar-for-dollar. You subtract the amount that the credit is worth from your tax liabilities. If you had to compare the two, a tax credit is more valuable on your tax return. Want to learn more about different credits you are eligible for or tax expenses you can claim? PriorTax tells you about expenses you can claim.

Archive for the ‘Tax Deductions and Credits’ Category

Stimulus Update

Posted by admin on January 25, 2022
Last modified: January 25, 2022

How to Update Bank Info for Stimulus Check &

How to Update Direct Deposit for Stimulus Check

Stimulus Update: 

With 2022 now underway but the pandemic ongoing, where do things stand with the U.S. government’s stimulus checks? Let’s break down things with a stimulus update and state of play. So that if you were eligible but haven’t received one or more of the stimulus checks, you’ll know what your next steps are.

stimulus check tax
stimulus check tax

How to get a stimulus check update for the first stimulus payment

You can log in to your individual IRS account on the IRS website to view a copy of Notice 1444. It will confirm information about the first stimulus payment issued. It appears under “Economic Impact Payment Information” on the Tax Records page with the IRS EIP letters for the second and third stimulus payments.

How to get a stimulus check update for the second stimulus payment

You can log in to your individual IRS account on the IRS website to view a copy of Notice 1444-B. It will confirm information about the second stimulus payment issued. It appears under “Economic Impact Payment Information” on the Tax Records page with the IRS EIP letters for the first and third stimulus payments.

How to get a stimulus check update for the third stimulus payment

The Get My Payment application on the IRS website is available to check the status of your third stimulus payment. Or you can log in to your individual IRS account on the IRS website to view a copy of Notice 1444-C. It will confirm information about the third stimulus payment issued. It appears under “Economic Impact Payment Information” on the Tax Records page with the IRS EIP letters for the first and second stimulus payments.

How to update address info for stimulus check

Did you incorrectly enter your address info or has your address changed and now need to know how to update your address info for stimulus check payments? Your address info for your stimulus check cannot be changed at this stage since the last payments have already been issued. If you didn’t receive your stimulus check.. You will need to claim the Recovery Rebate Credit on your 2021 tax return to claim your payment.

So, if you were wondering how to update your address info for stimulus check payments. Now you know that the IRS is no longer accepting corrections to your address for any of the three stimulus check payments from the federal government.

How to update bank info for stimulus check

Did you not have the correct information to hand and now need to know how to update your bank info for stimulus check payments? Your bank info for your stimulus check cannot be changed at this stage since the last payments have already been issued. If your bank info on file is invalid or the account closed, the bank will have returned the payment to the IRS. You may have had a check mailed to the address the IRS has on file for you. However, if you didn’t receive your stimulus check this way.. You will need to claim the Recovery Rebate Credit on your 2021 tax return to claim your payment.

So, if you were wondering how to update your bank info for stimulus check payments. Now you know that the IRS is no longer accepting corrections to your bank info for any of the three stimulus payments from the federal government.

How to update direct deposit for stimulus check

Did you not have the correct information to hand and now need to know how to update your direct deposit info for stimulus check payments? If your direct deposit info on file is invalid or the account closed, the bank will have returned the payment to the IRS. You may have had a check mailed to the address the IRS has on file for you. However, if you didn’t receive your stimulus check this way.. You will need to claim the Recovery Rebate Credit on your 2021 tax return to claim your payment.

So, if you were wondering how to update your direct deposit info for stimulus check payments. Now you know that the IRS is no longer accepting corrections to your direct deposit info for any of the three stimulus payments from the federal government.

To summarize, if you are still waiting on stimulus checks from the IRS, in most cases, you can’t make any changes or update the information the IRS has. With the end of the 2021 calendar year, the IRS has now issued the last of the stimulus checks for the first, second, and third Economic Impact Payments. Although you can no longer request stimulus checks or the reissuing of missing stimulus checks.. You CAN claim your missing payments by claiming a recovery rebate credit on your 2021 or 2021 tax return.

How to claim the first and/or second stimulus check payments

If you didn’t receive a first and/or second stimulus check or received less than the full amount. You may be able to claim the Recovery Rebate Credit by filing your 2020 prior-year tax return. Visit PriorTax.com to prepare and file your 2020 prior-year tax return today to take advantage of this tax credit and receive your missing stimulus payments. Before filing, you can use our comprehensive Prior Year 2020 Tax Calculator to see how you may be able to benefit from the Recovery Rebate Credit. As well as any other credits or deductions available to you.

If your 2020 tax return has already been processed, you can amend your 2020 tax return. We offer tax return amendment services for both current and new PriorTax customers.

How to claim the third stimulus check payment

If you didn’t receive a third stimulus check or received less than the full amount, you may be able to claim the Recovery Rebate Credit when you file your 2021 tax return. Visit PriorTax.com today to prepare and file your 2021 tax return, including claiming the Recovery Rebate Credit to claim your missing third stimulus payment. Before filing, you can use our comprehensive 2021 Tax Calculator. See how you may be able to benefit from the Recovery Rebate Credit as well as any other credits or deductions available to you.

Stimulus Check and Recovery Rebate Credit

Posted by admin on January 10, 2022
Last modified: January 18, 2022

Let’s Talk about 2nd Stimulus Check, 3rd Stimulus Check and Recovery Rebate Credit

Who is Eligible for Stimulus Checks

Since the pandemic’s start on March 11, 2020 (the date the World Health Organization declared the COVID-19 outbreak a pandemic), to date, the U.S. government has made three rounds of stimulus payments to American taxpayers. 

I’ve heard about “Stimulus Check,” “Economic Impact Payment,” and “Recovery Rebate Credit.” Are they all the same thing? How are they related?

Since the pandemic began, Congress has passed two economic stimulus bills that have included direct payments to American taxpayers.

  • The CARES (Coronavirus Aid, Relief and Economic Security) Act of 2020 included a round of one-time payments of $1,200 per adult and $500 per dependent child.
  • The Consolidated Appropriations Acts of 2020 included a second round of one-time payments of $600 per adult and $600 per dependent child.
  • The American Rescue Plan Act of 2021 included a third round of one-time payments of $1,400 per adult and $1,400 per dependent child.

The exact amount received varied depending on income. Many received these one-time cash payments as 1st, 2nd, and 3rd stimulus checks. Or debit cards sent to their addresses or direct deposits to their bank accounts in 2020 and 2021.

Economic Impact Payments

The IRS refers to these payments as economic impact payments which is why you see that term being used on their website, including their “Get My Payment” tool.

Recovery Rebate Credit

The stimulus checks were, in fact, advance payment of a federal tax credit known as the recovery rebate credit. Eligible taxpayers who didn’t receive their payments must file their tax returns to take advantage of this credit and claim their missing stimulus payments. You may also be eligible to claim this credit on your tax return if you received less than the full amount.

You’ll need to file your 2020 tax return to receive the Recovery Rebate Credit equivalent to the 1st and 2nd stimulus checks/economic impact payments. And you’ll need to file your 2021 tax return to receive the Recovery Rebate Credit equivalent to the 3rd stimulus check/economic impact payment.

stimulus check and recovery rebate credit
stimulus check and recovery rebate credit

Who is eligible for the 1st stimulus check?

All U.S. citizens, permanent residents, and qualifying resident aliens with a social security number could receive payments. There was no age requirement, but taxpayers could not be someone else’s dependent. For taxpayers with dependents, dependents had to be under 17 years old to be eligible for the $500 payments for dependents.

Stimulus checks were not dependent on employed status. However, there were income limits to qualify for the full amount. As a result, the stimulus check amount began to phase out in steps. Incomes above $75,000 for single filers, $112,500 for head of household filers, and $150,000 for married filing jointly filers.

The 1st stimulus check, like all three economic payments, is not counted as income for means-tested government benefit programs like Medicaid, SNAP, and TANF.

Who is eligible for the 2nd stimulus check?

All U.S. citizens, permanent residents, and qualifying resident aliens with a social security number. Married couples where one spouse had an individual taxpayer identification number could also receive payments. There was no age requirement, but taxpayers could not be someone else’s dependent. For taxpayers with dependents, dependents had to be under 17 years old to be eligible for the $500 payments for dependents.

Stimulus checks were not dependent on employed status. However, there were income limits to qualify for the full amount. As a result, the stimulus check amount began to phase out in steps. Incomes above $75,000 for single filers, $112,500 for head of household filers, and $150,000 for married filing jointly filers.

The 2nd stimulus check, like all three economic payments, is not counted as income for means-tested government benefit programs like Medicaid, SNAP, and TANF.

Who is eligible for the 3rd stimulus check?

All U.S. citizens, permanent residents, and qualifying resident aliens with a social security number or individual taxpayer identification number could receive payments. There was no age requirement, but taxpayers could not be someone else’s dependent. For taxpayers with dependents, dependents can be any age and be eligible for the $1,400 payments for dependents.

Stimulus checks were not dependent on employed status. However, there were income limits to qualify for the full amount. As a result, the stimulus check amount began to phase out in steps. Incomes above $80,000 for single filers, $120,000 for head of household filers, and $160,000 for married filing jointly filers.

The 3rd stimulus check, like all three economic payments, is not counted as income for means-tested government benefit programs like Medicaid, SNAP, and TANF.

I didn’t receive one or more of the stimulus checks. Can I still claim my payments?

The IRS recently finished issuing all 3rd-round stimulus checks; they were sent out by December 31, 2021. All 1st- and 2nd-round stimulus checks went out in 2020. However, if you were eligible but didn’t receive one or more of your stimulus checks. It’s not too late to get the money the U.S. government made available to help people out during the pandemic. 

You still have time to claim your payments if you didn’t receive one or more of the stimulus checks despite being eligible. You will need to file a tax return where you will claim your payments as a tax credit. And then you will receive your payments as part of your tax refund.

Are you one of the people missing their 1st, 2nd, or 3rd stimulus check, or did you receive less than the full amount for these payments? In that case, take action today to claim this additional money. Visit PriorTax.com today to get started.

Missing your 1st or 2nd stimulus check?

Then, get started filing your 2020 tax return to claim your 2020 Recovery Rebate Credit. Take advantage of PriorTax.com’s simple tax preparation software to ensure that you don’t leave any of your eligible tax credits on the table.

Missing your 3rd stimulus check?

The IRS has announced that they will begin processing 2021 tax returns on February 12th. But you don’t need to wait until then to start preparing your 2021 tax returns. If you already have the information you need, you can get started today. PriorTax.com’s easy-to-use web-based tax preparation software is up and running for 2021 tax returns.

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 BRACKETS

Posted by admin on December 8, 2021
Last modified: December 8, 2021

Each year new tax tables are published by the IRS, which are used to determine how much tax each taxpayer owes. These tables include information about where the federal individual income tax brackets fall for each tax year.

Are you preparing a prior year’s tax return for 2019? Check out our awesome Tax Calculator 2019. Let’s discuss what you need to know about the tax brackets in 2019, including how they work and how they affect your tax situation.

What are tax brackets?

Each tax bracket is a range of two incomes, an upper and lower bound, which dictates the income range that is taxed at each tax rate. What income groups correspond to each of the seven brackets will depend on your filing status. For federal individual income taxes, there are seven tax brackets.

taxes 2019
taxes 2019

Why are tax brackets important?

Each of the seven taxable income groups or tax brackets corresponds to a tax rate. The seven tax brackets in 2019 corresponded to the following tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

The U.S. personal income tax system is what is known as a progressive tax system. Tax brackets are used to group taxpayers according to income ranges. This creates lower tax rates for lower-income earners and higher tax rates for higher-income earners.

However, it’s important to keep in mind that only the income that falls within an income bracket will be subject to the bracket’s corresponding tax rate. This makes the tables a bit more complicated to read and use. But, it also means that just because your income might put you into a higher tax bracket, not all of your income will be taxed at the corresponding higher tax rate.

How to use the 2019 tax brackets?

What information do you need before starting?

When reading the 2019 tax brackets, you need two main pieces of information: your total taxable income and your filing status for the 2019 tax year.

There are five different Filing Statuses for federal income taxes. Your status will depend on factors such as your marital status, occupation, number of children. The five different categories are:

  • Single
  • Married, filing jointly
  • Head of Household
  • Married, filing separately
  • Surviving Spouse/Widow(er)

The IRS website offers a web application, their Interactive Tax Assistant, which can be used to make sure you accurately determine your status based on their guidelines.

Total Taxable Income

Total Taxable Income refers to the portion of your gross income that U.S. tax law considers subject to taxation. You arrive at this number by taking your Adjusted Gross Income (AGI) and subtracting any deductions you are entitled to, either itemized or the standard deduction. Your relevant adjustments will depend on your filing status and your sources of income and financial activity during the year.

The 2019 tax forms have instructions that you can follow to arrive at your total taxable income. However, an online tax filing application can help you calculate your total taxable income as part of preparing your 2019 tax return. You can visit PriorTax.com to learn more and get started today.

Now with both your filing status and total taxable income at hand, the table below can point you toward your relevant tax brackets for the 2019 tax year.

2019 Tax Brackets

What calculations do you need to do to apply the 2019 tax brackets to your tax situation?

First, when looking at the tax brackets for 2019 or any other tax year, it’s important to remember that the U.S. personal income tax system uses a progressive tax system. This means reading and applying the 2019 tax brackets is not as simple as finding your filing status column and total taxable income row in the table above, applying the tax rate to your total taxable income, and then you’re done.

A few more calculations are needed to take into account the fact that although your total taxable income may put you into a higher tax bracket, the U.S. Government doesn’t tax all of that income at the corresponding higher tax rate.

So, what does this look like when applying the tax brackets to your tax situation?

To estimate your income tax obligations, you will need to multiply the tax rates for each bracket by the amount of your total taxable income that falls into that bracket. Once you have your tax for each bracket, you can add these up to get your total federal income tax obligation.

Now, let’s take as an example a single person with $45,000 in total taxable income in 2019.

$45,000 in taxable income falls into three tax brackets, so three tax rates apply: the 10%, 12%, and 22%.

1. Calculate your income tax due in the 10% bracket

Your income from $0 to $9,700 falls into this bracket, so:

$9,700 x 0.10 = $970

2. Calculate your income tax due in the 12% bracket

Your income from $9,700 to $39,475 falls into this bracket ($29,775 in total), so:

$29,775 x 0.12 = $3,573

3. Calculate your income tax due in the 22% bracket

This is your highest bracket. Your income from $39,475 to your total taxable income ($45,000) falls into this bracket ($5,525 in total or $45,000 – $39,475 = $5,525), so:

$5,525 x 0.22 = $1,215.50

4. Add up your income tax due in each bracket to obtain your total federal income tax obligation

$970 + $3,573 + $1,215.50 = $5,758.50

Want help calculating your taxes based on your income brackets? For help figuring your federal income tax obligations and all other aspects of preparing your 2019 tax return and any other prior-year tax return, visit PriorTax.com.

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.

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 My 2019 Taxes Electronically

Posted by admin on November 9, 2021
Last modified: November 16, 2021

Did you know that the income threshold is different if you are self-employed? You needed to file your 2019 taxes if you had at least $400 of net earnings from self-employment. You can still file your 2019 taxes if this applies to you and you did not fulfill your filing requirements in 2020.

If You are Expecting a Tax Refund

If you are expecting a tax refund, you have three years to file your prior year’s taxes. That means that April 15, 2023 is the deadline to submit your 2019 tax return and claim your 2019 tax refund.

After that date, the amount the IRS owes you is retained by the government and goes to the U.S. Treasury. After that date, you will also be unable to apply any excess tax paid toward another tax year where you owe income tax.

You may also be owed money by the IRS even if you earned less than the minimum gross income and weren’t required to file your 2019 taxes. Your employer may have withheld income tax for you throughout 2019 that you can claim back. 

You aren’t able to get any of your money owed back until you file. So, if you haven’t yet filed your 2019 taxes you should file as soon as possible to get your money as soon as possible.

file my 2019 taxes electronically
file my 2019 taxes electronically

If You Owe Taxes

If you owe taxes, it will often be a good idea to file your prior year’s taxes, even if you are not currently able to pay your unpaid tax bill in full. Although you can face tax penalties filing your 2019 taxes after the deadline, you can reduce these the earlier you file.

The IRS has both late filing and late payment penalties. However, the late filing penalty will usually work to be more expensive than the late payment penalty. This is why you can generally benefit from filing even if you are unable to pay your full unpaid tax bill.

This advice remains true even if you owe a significant amount to the IRS but cannot pay your full tax bill for 2019. After filing your 2019 taxes, you can then benefit from working out a tax payment plan with the IRS. This has a few benefits:

  • By filing your 2019 tax return, you can put a stop to the more considerable late filing penalties. Remember that letting IRS late filing penalties will usually end up being much more costly than the equivalent late payment penalties.
  • Contacting the IRS to be put on a payment plan means that you can pay off your tax bill according to what you are able to afford.
  • A payment plan in place to pay your outstanding tax bill means that you can avoid more severe forms of collection enforcement for that bill.

And, can I still file my 2019 taxes electronically?

No. Unfortunately, you cannot still file your 2019 taxes electronically. The deadline to file your 2019 taxes electronically was October 15, 2020. However, there are options available so that you can put together the paperwork for your 2019 taxes electronically. Once the documents for your 2019 tax return are completed, you can print and mail them to the IRS and/or the relevant state tax agencies.

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

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.

2019 Tax Calculator

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

If you need to file back taxes for 2019, a tax calculator is something you’ll want to have in your back pocket during the process. A federal tax calculator for the 2019 tax year will give you an estimate of what your tax liability was for that year and can help guide your next steps.

Use a 2019 tax calculator to figure out which of the three possible scenarios of where your relationship with the IRS currently stands applies to you:

  • The taxes that have already been withheld from your paychecks from 2019 combined with the tax credits you are eligible for may cover your 2019 tax bill.
  • If you’ve had too much tax withheld from your paychecks, then you should expect a tax refund when you file, and the 2019 tax calculator can tell you how much that will be.
  • If you’ve not had enough withheld or prepaid based on estimates (if you’re self-employed), then you may still need to pay the rest of your tax bill.

Link to 2019 Tax Calculator

Gather up your documents and get started today with our easy-to-use online federal tax calculator for 2019. And if you need help with your tax returns for any other year, we have the tools for that too. We offer tax calculators for each year going back to 2011, and we can help you prepare prior-year tax returns for each year going back to 2008. So visit PriorTax.com today to get up to date with your taxes.

Is the federal tax calculator for 2019 safe to use?

When you use any of our online prior-year tax calculators, it will be completely anonymous. You don’t need to create an account with us or enter any identifying personal information to use it.

What do information do I need to use a federal tax calculator for 2019?

When you open our 2019 tax calculator, you’ll find three different sections. The information needed to estimate your tax bill has been divided into three parts to make things as straightforward as possible.

The first section is ‘Family’. This is where you’ll provide your general personal information, including things such as age, filing status, and the number of dependents you are claiming.

The second section is ‘Income’. This is where you’ll need the tax paperwork you received from work and from any banks or other financial institutions. You’ll need to enter

  • any income you received as an employee or during unemployment
  • any income earned from investments, including any retirement plans
  • any income earned from either self-employment or your own business
  • any other forms of income such as Social Security benefits, federal tax withheld from benefits, or alimony payments

This information is used to determine your total income for 2019.

The third and final section is ‘Deduction and Credits’. This is where any estimated federal and state tax payments you have already made are taken into account. You will also enter information about household, education, and unreimbursed work expenses and information about retirement savings plans and donations made during the year.

What information does the federal 2019 tax calculator provide?

In addition to your estimated refund or outstanding tax bill, you will also see a breakdown of the numbers that contributed to this amount. You will be given line-by-line details outlining your:

  • Total Income
  • Above the Line Deductions
  • Adjusted Gross Income
  • Standard Deduction
  • Total Exemptions
  • Taxable Income
  • Regular Taxes
  • Alternative Minimum Tax
  • Tax Credits
  • Additional Taxes
  • Tax Payments
  • Refundable Credits

What can I do if I am missing any information needed for the federal tax calculator for 2019?

The 2019 tax calculator, like all of our online prior-year tax calculators, can only provide an estimate based on the information that you enter into the form. If you enter estimates or guesstimates for details like your wages, keep in mind that our calculation will be based on those numbers. Remember that your exact tax refund or tax bill may change once you enter your exact numbers.

It is always important to keep track of any tax documents you receive throughout the year, like your W-2 forms from your employers or 1099 forms from your bank or for any other source of income. If you are missing any of these forms or never received them, a good first point of call will be your work or your bank.

However, the IRS understands that there are times when you aren’t able to obtain copies of these documents. If this is your situation, you can contact the IRS to request a free tax transcript from the IRS. These are available for the current tax year as well as for the past three years and will summarize your return information.

Sometimes you need an actual copy of your prior tax return rather than just a summary. For those situations, a copy of your prior tax return can be requested from the IRS for a fee. You are able to request full copies for the current tax year and for the past six years.

The federal 2019 tax calculator estimates that I am owed a refund. What next?

Everyone has three years from the original filing deadline to file their prior-year tax return and claim their refund. When you don’t have an outstanding tax bill, you are not subject to any IRS penalties for not filing your return on time. And you have until April 15, 2023, to claim your refund for the 2019 taxes you overpaid.

The federal tax calculator for 2019 estimates that I have outstanding taxes to pay. What next?

Unlike the deadline to claim a refund, there is no deadline to file your 2019 tax return.

There are penalties for both late filing and late payment that the IRS will levy. These additional charges will accumulate over time. However, the late filing penalty will usually work out to be more costly than the late payment penalty. So it’s often a good financial decision to file your prior-year return for 2019 as soon as possible, even if you are not currently in a position to pay the full bill.

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.