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Category: Tax News

Get up to date on all tax news from the IRS. The IRS is constantly updating us with law changes and new rules. Sometimes, it’s too much to keep up with. We’ll decipher the confusing lingo while you focus on staying current  on what’s really important.

If you have more questions about staying up to date with the IRS, leave a comment. Our tax team is ready to help!

Archive for the ‘Tax News’ 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.

File 2020 Taxes Online

Posted by admin on December 21, 2021
Last modified: December 21, 2021

Filing 2020 taxes for 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 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.

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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What is Form 1099-NEC?

Posted by Manisha Hansraj on January 11, 2021
Last modified: January 13, 2021
Form 1099-NEC

For the 2020 tax year, there’s a new income statement.

The IRS has introduced a new form called Form 1099-NEC. Whether you’re well versed in reporting your taxes or not, this may be confusing.

Typically, your self employment income is reported on box 7 of your 1099-MISC statement. For the 2020 tax year it is now reported on a 1099-NEC. The IRS has done this to separate filing deadlines.

Why would you receive Form 1099-NEC?

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Understanding Joe Biden’s Tax Plan

Posted by Manisha Hansraj on December 18, 2020
Last modified: December 18, 2020
joe biden's tax plan

Many Americans want to know how our future president’s tax plan will affect them.

Biden’s tax plan will affect wealthier Americans, corporations, and everyday individual taxpayers. He also plans on making significant tax revisions on Trump’s previous tax plan which took place in 2017.

Skip the tax jargon by taking a look at this quick breakdown.

Key Changes

Here are the major findings in Biden’s tax plan.

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How does the Coronavirus Stimulus Check Work? (FAQ’s)

Posted by Manisha Hansraj on April 7, 2020
Last modified: April 15, 2020
stimulus check

The IRS has approved an economic stimulus package due to the spread of the Coronavirus (COVID-19).

A $2 trillion economic plan was passed by the Senate to combat the affects of COVID-19 on Americans. This stimulus plan includes payments to individuals, the self-employed, unemployment coverage, and more.

Here are some common questions about the coronavirus stimulus checks.

Do I have to apply for the stimulus check?

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How to File Your 2019 Taxes

Posted by Manisha Hansraj on January 13, 2020
Last modified: June 24, 2020
2019 tax return

The 2020 tax season starts on January 27, 2020. January kicks off the new year and with a new year, comes a new tax season. Get a fresh start by finding out the new tax changes for your 2019 tax return.

Additionally, check out some tax reminders below.

Tax dates to remember

It’s important to set a reminder whether it’s your phone or calendar.

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Tax Deductions: Choosing to Itemize or Claiming the Standard Deduction

Posted by Manisha Hansraj on January 3, 2020
Last modified: January 3, 2020

Trying to understand anything tax related makes you feel like you’re back in grade school.

However, it doesn’t have to be difficult. Here’s some sure-fire information that may help you out if you’re a first time filer, or if you have some general questions about claiming tax deductions.

What’s the difference between claiming the standard deduction and itemizing deductions?

In general terms, a tax deduction is a certain amount you are allowed to exclude from your income. This means that you are taxed on a lower amount of income, and thus pay less in taxes.

While not as valuable as tax credits – which directly decrease your tax liability – deductions can still reduce your tax burden significantly.

There are two ways to claim deductions.

  1. Itemize deductions. Add up all of your allowable expenses and subtract them from your income.
  2. Claim the standard deduction. Deduct the basic amount available to everyone.

While preparing your taxes you need to figure out whether you get a bigger tax break from itemizing your deductions or claiming the standard deduction. Most people end up claiming the standard deduction, but some people have enough allowable expenses to make it worth their while to itemize deductions.

The Standard Deduction

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10 Reasons to File Your Prior Year Tax Return Now

Posted by Manisha Hansraj on December 3, 2019
Last modified: December 5, 2019
prior year tax return

It’s not too late to file your taxes.

Life is never put on hold, even for tax season. Before you know it, the April and even October deadline fly right by. Then, you forget to file it next tax season and then the season after that.

However, although the deadlines go by, you should still file your prior year tax return. Here are some reasons why.

1. You’re getting a refund

One of the most important things to remember is that the IRS does not wait for anyone. According to the IRS, you have a three-year statute of limitations for refunds; meaning you can only claim tax refunds going back three tax years within the original April due date.

For example, if you want to claim a 2016 tax refund, your last chance to claim it is April 15, 2020. This means you must file by that date to get your refund. Therefore, any tax years going back from 2016 cannot be claimed.

Check out our helpful tax calculators to determine your refund for relevant tax years.

2. The IRS can hold your current year refund

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Did You Miss The 2018 Tax Deadline?

Posted by Manisha Hansraj on October 14, 2019
Last modified: October 23, 2019
missed 2018 tax deadline

Time waits for no one, especially the tax season.

With the year ending soon, another tax season is on the way. If you’re stuck trying to figure out what the next steps are for the missed 2018 tax deadline, keep reading.

Can you still e-file your 2018 tax return?

Although April 15, 2019, was the original tax deadline, you can still e-file your tax return until October 15, 2019. After this date, you will be required to paper-file your tax return. This means that you must to print, sign, and mail your tax return to the IRS and your state department of revenue.

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