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

When Are Taxes Due for 2022 Tax Return

Posted by admin on November 14, 2022
Last modified: November 14, 2022

Do you want to know the date for when are taxes due in 2022?

Well, we have the answer for you! According to the IRS, taxes are due on Tuesday, April 18, 2023. So be sure to mark that date in your calendar!

As the end of the every fiscal year approaches, many Americans begin to feel the pressure of taxes. For some, April 15 is a day of dread as they scramble to pull together all the necessary paperwork and documentation. Others look forward to receiving their refund check from the government.

No matter which camp you fall into, it is important to be aware of the latest changes to the taxation system. This year, for example, due to Emancipation Day being recognized as a holiday in Washington, D.C., taxes will be due on Tuesday, April 17.

The IRS typically starts accepting returns in late January, giving taxpayers nearly three months to get their affairs in order. However, victims of federally declared disasters may have an extended filing deadline.

It’s important to be aware of the various tax deadlines that apply to you, such as the federal deadline, your individual state deadline, and the late filing deadline. Here, we’ve listed the major ones for the tax year 2022 (taxes filed in 2023).

When is the federal tax filing deadline and taxes due for 2022 Tax Return?

The deadline for federal tax returns and payments is April 18, 2023.

What are some other important dates for 2023 filing taxes?

The IRS has set the following deadlines for the upcoming tax seasons:

  • January 2023 – IRS begins accepting returns
  • February 21, 2023 – Fourth quarter estimated payments due for the tax year 2022
  • February 1, 2023 – Employers must mail W-2 forms
  • April 18, 2023 – Tax Day/federal returns and payments due, final day for 401k contributions, the final day to file an extension

What is the 2023 tax filing deadline for my state?

The due date for filing and paying state taxes varies by state. You can check your state’s Department of Revenue for the most up-to-date information.

As an independent contractor, consultant, or self-employed individual, it’s important to be aware of the various deadlines for filing your taxes. For example, the last quarterly estimate deadline for work completed during Q4 of 2022 is February 18, 2023. However, if this is your first time reporting an estimate, you may have some additional questions. In that case, check out more information about quarterly estimate taxes here.

when are taxes due 2022
when are taxes due 2022

We know it takes a lot of work to manage your calendar. That’s why PriorTax reminds you when quarterly estimates are due. Get started today!

When is the deadline to file a federal tax return extension in 2023?  

The tax filing deadline to file a 2022 federal tax return extension is fast approaching! You must file a tax extension by April 18, 2023, to avoid penalties. Keep in mind that a 2023 tax extension only gives you more time to submit your tax return, not to pay your taxes. So make sure you have all your ducks in a row before the April 18 tax deadline!

Will the IRS extend the 2023 tax filing deadline for 2022 returns?

As we approach the end of the tax year, many people are wondering whether the IRS deadline for filing returns might be extended. Unfortunately, it’s not likely. The IRS typically only extends deadlines in the case of unexpected events, like natural disasters. The deadline is on track to be April 18, 2023.

When do I have to file an amended tax return for the 2022 tax year?

It’s important to know the deadline for filing an amended return, three years from the original due date. For example, the deadline for a return filed in 2023 would be April 18, 2026. After that, you would only need to file an amended tax return only if changes needed to be made, and you can’t amend a return until the IRS has accepted it.

How do I file online my 2023 taxes before the tax filing deadline?

Filing your taxes doesn’t have to be a chore. Let PriorTax take care of everything for you. We’ll tailor the filing process to your specific needs and make sure everything is done before the deadline. Plus, our support team is always here to help you out should you need it. So get started today and make tax season a breeze.

Fourth Stimulus Checks

Posted by admin on September 30, 2022
Last modified: September 29, 2022

As concerns about inflation continue to mount, some states are taking matters into their own hands. Eighteen states will send fourth stimulus checks payments to taxpayers in the coming months in an effort to provide relief from rising prices.

Unlike previous pandemic relief measures, these fourth stimulus checks payments are much more targeted, and most offer considerably lower dollar amounts. That’s not because governments have developed a mean streak. Instead, it’s about helping Americans whether raising prices without making inflation worse.

These states hope to ease the burden on residents struggling with inflation by providing targeted relief payments.

With prices soaring for basic goods and services, many Americans struggle to make ends meet. To ease the financial burden, the federal and state governments have implemented relief plans that target specific sectors or groups.

For example, some gas cards provide discounts at the pump, while others offer direct disbursements based on income thresholds. While these plans won’t eliminate the pain caused by rising prices, they can help ease the financial burden of struggling people.

Summary on the Latest 6 State’s Fourth Stimulus Checks

fourth stimulus checks
fourth stimulus checks

Fourth Stimulus Checks in California

Expected fourth stimulus check, maximum $1,050 as a rebate. Californians rejoice! Gas prices in California may be through the roof, but soon enough, some financial relief will be headed your way. Thanks to the state budget for 2022-2023 that Governor Gavin Newsom signed on June, 23 million California residents would be receiving direct payments ranging from $350 to $1,050. This is amazing news for over half of the state’s population! The California Franchise Tax Board has confirmed that these payments will start rolling out on Oct. 7.

In anticipation of this event, the state has set up an information page all about the “Middle-Class Tax Refund.” In addition, you can find a calculator on this page to help you estimate your payment amount.

California is set to provide stimulus payments to eligible taxpayers through direct deposits and debit cards. Individual taxpayers who make $75,000 or less per year will receive $350, while eligible couples filing jointly will receive up to  $700 if they make no more than $150,000 annually. Households with qualifying dependents will also receive an additional $350.

Payments are set to be issued between October 2022 and January 2023. Californians can expect to receive their payments during this time frame via direct deposit and debit card.

The majority of people eligible for the Golden State Stimulus will receive their payments by direct deposit, with a smaller number of debit cards being used to distribute the remaining payments. The schedule for issuing these payments is as follows:

-If you received either of the two previous Golden State Stimulus payments by direct deposit, you’ll receive your Middle-Class Tax Refund by direct deposit between Oct. 7 and Oct. 25.

– Otherwise, if you have filed your 2020 tax return electronically in California and got a tax refund by direct deposit, you may expect to receive a direct deposit between Oct. 28 and Nov. 14.

– Fourth stimulus checks debit cards can be used to distribute the remaining payments from the state. For example, if you plan to receive the Golden State Stimulus by debit card, you could expect to receive a fourth stimulus check debit card for the Middle-Class Tax Refund between Oct. 25 and Dec. 10. Other payments done by debit card would be sent by 2023, Jan. 15.

Fourth Stimulus Checks in Florida

Expected fourth stimulus check, $450 payments. Some families in Florida with children will get one-time payments of $450 per child through Hope Florida – A Pathway to Prosperity, a program operated by the Department of Children and Families.

This money comes from pandemic aid funds intended for households receiving Temporary Assistance for Needy Families (TANF) cash assistance and will help to offset the costs of caring for children. Eligible recipients include foster parents, relative and non-relative caregivers of children, participants in the state Guardian Assistance Program, and families receiving TANF cash assistance.

This one-time payment provides a much-needed financial boost for families struggling to make ends meet during these difficult times.

The state of Florida is providing a payment of $450 per child to offset the costs of rising inflation and help with the new school year. You don’t have to do anything to receive this payment; if you are eligible, you should have already received a check in your mail box. Delivery was anticipated to occur on or before Jul. 25, when the state’s back-to-school tax holiday began.

Fourth Stimulus Check in Massachusetts:

Expected fourth stimulus check, up to 7% of income may be returned. Up to 7% of your income may be returned to you in the form of a rebate check from the state of Massachusetts. The exact amount of the rebate will not be announced until Sept. 20, but it is estimated that each resident will receive an amount equal to 7% of their total income tax paid for the year.

This return of funds is possible due to a 1986 law that allows for rebates when there is a surplus in state revenue. Currently, the state auditor’s office has declared a surplus of $2.3 billion. For someone with an annual income of $75,000, this would mean a rebate of approximately $250.

While this new fourth stimulus checks news in Massachusetts is a relief to many taxpayers, it is important to keep in mind that this is only a temporary measure.

Fourth Stimulus Check in New Jersey

Expected fourth stimulus check, $500 rebate checks. In order to get the $500 rebate check from the state of New Jersey, you must file your taxes using a taxpayer identification number instead of a Social Security number. The Excluded New Jerseyans Fund applies to nonresident and resident aliens, their spouses, and dependents. You do not need to apply for this rebate; after you file your 2020 NJ-1040 return, a rebate will be calculated automatically for most eligible taxpayers in New Jersey.

If you are eligible, you will receive a rebate equal to the tax paid after credits, up to a maximum of $500. So, if the amount on line 50 is less than $500, you will receive a check for that amount. But if the amount on line 50 is $500 or more, you will get a check for $500. Tax rebates will be issued as paper checks, separate from your Income Tax refund.

To qualify, you must be:

– A New Jersey resident for all or part of 2020

– Have submitted a 2020 NJ-1040

– Have at least one qualifying child claimed as a dependent on your NJ-1040

– Have a Balance of Tax of $1 or more (line 50 of the NJ-1040)

– And have New Jersey Gross Income (line 29 of the NJ-1040) that is:

– $150,000 or less for individuals with a filing status of Married Filing Joint, Head of Household, or Surviving Spouse

– $75,000 or less for individuals with a filing status of Married Filing Separate or Single

Pending Fourth Stimulus Check in Pennsylvania.

Pennsylvania is considering a new program providing direct financial assistance to nearly 250,000 households. The PA Opportunity Program, proposed by Governor Tom Wolf, would give eligible households with an income of $80,000 or less a one-time payment of $2,000.

The payments would come from the state’s surplus; however, some state Republicans argue that this could worsen inflation. Meanwhile, some residents may already be eligible for a Property Tax/Rent Rebate under a different program. Fourth stimulus checks are being sent out to those who qualify, including senior people over 65, widows and widowers over the age of 50; and people with disabilities 18 and older.

You could qualify for a rebate of up to $650 from the Pennsylvania Department of Revenue if your annual income amount is below certain thresholds. For homeowners, the maximum income is $35,000 per year. For renters, the maximum income is $15,000 per year. In addition, Social Security income is only required to be claimed if it is half of your total income. To see the full list of application rules and income exemptions, visit the Pennsylvania Department of Revenue website.

The latest round of stimulus checks will let people use their most recent tax data for 2019 or 2020 (file a tax return through TurboTax) so that the newest information about dependents and payments is available. This will not likely have any lasting impact beyond updating your dependent or payment data. Still, the IRS will use only the data from your 2020 tax return to determine whether you are eligible for the fourth stimulus checks, as long as the IRS has processed your return (WMR Refund Status=Refund Sending). If your 2021 tax information has changed, that will be reported on the 2021 return, and your credit amounts will be adjusted accordingly. Make sure you are set up for this round of stimulus checks with our PriorTax Tax Service professionals.

Updates on Student Loan Forgiveness

Posted by admin on September 9, 2022
Last modified: September 15, 2022

As higher education costs continue rising, many students struggle to repay their loans. The Biden-Harris administration proposes a new income-based repayment and Student Loan Forgiveness plan to make the lending process more manageable for future borrowers.

The Biden-Harris Administration recently has committed to providing relief for student debtors. Under the new Student Loan Forgiveness plan, borrowers can receive up to $20,000 in debt forgiveness, depending on some factors regarding their loans, income, and other financial aid they’ve received.

student loan forgiveness
student loan forgiveness

The government’s moves to “cancel” the debt and extend the student loans pause are just two parts of a larger Student Loan Forgiveness plan that could turn out to be the most costly executive plan in the history of higher education. The Biden-Harris administration and the U.S. Department of Education (DOE) have developed a three-part plan to help federal student loan borrowers return to regular repayment schedules and prevent unnecessary delinquencies or defaults. The updates also complement previously announced changes, including ending the amnesty for government service loans and the Fresh Start program for insolvent borrowers.

Here’s a look at the various initiatives involved with the plan, who qualifies, and how to go about claiming the relief. With this new plan in place, students can focus on their education without the burden of oppressive debt weighing them down.

Student Loan Forgiveness: When Do Student Loans Resume?

As of December 31st, 2022, the automatic pause on student loans repayments has been extended once again. This means you will not have to make any loan payments until later. Don’t hesitate to get in touch with your lender for more information if you have any questions about your loan or repayment status.

The Department of Education proposes a new income-based repayment plan to protect more low-income borrowers from repayment and cap monthly college loan repayments to 5% of borrowers’ discretionary income, which is half the rate borrowers currently have to pay in most cases.

In addition, there are plans to write off up to $10,000 of federal student loans debt for borrowers making less than $125,000 with relief of up to $20,000 for those who received a Pell Scholarship and qualify for borrowers.

How to Apply for Student Loan Forgiveness in 2022?

There are a few things to consider if you want to have your student loans forgiven. The first is whether or not you qualify for relief. The relief is most heavily targeted to low and middle-income families, so if you come from a family that falls into either of those categories, you may be eligible for more forgiveness than others.

Individuals with income under $125,000 or households with under $250,000 in total annual income are eligible as follows:

Pell Grant recipients with loans held by the U.S. Department of Education will have up to $20,000 in student debt canceled. Non-Pell Grant recipients with loans held by the U.S.

The Department of Education (DOE) is still working out the details of how to forgive debt for students who took out loans from private lenders. We will continue to provide updates here as they are announced. In the meantime, it is encouraged to apply for relief as soon as possible to receive it before the repayment pause expiration (end of the year).

What do you need to know about Public Service Loan Forgiveness Program (PSLF)?

Are you struggling to pay off your student loans? Then, you may be eligible for the Public Service Loan Forgiveness (PSLF) program.

The Public Service Loan Forgiveness (PSLF) program may forgive the remaining loan balance on your Direct Loans after you make 120 monthly qualifying payments while working full-time for a qualifying employer.

To qualify, you must be employed by a government organization, non-profit organization, or another qualifying employer when you apply for student loan forgiveness and during loan repayment.

Overall, according to an analysis provided by the Department of Education, student loan forgiveness will eliminate student debt for about 20 million people and cut monthly payments by an average of $250 for borrowers with residual balances who have payment plans.

How to E File Previous Years Taxes Online

Posted by admin on August 10, 2022
Last modified: August 10, 2022

Life is full of surprises; sometimes, things will simply happen before you know it, like the Tax Deadlines in April. If you have taxes past due, you are probably wondering where to begin. Has the deadline officially passed, or is it possible to continue filing previous years taxes? Tax Service Professionals at PriorTax are going to take you through the steps.

How to File Previous Years Taxes

To file your prior year’s return, you will need your W-2s or 1099 forms that you received in those tax years to report your income. Back tax returns have to be filed on paper and mailed to the IRS – they can be filed electronically or simply E-file tax online with PriorTax, and our LIVE Tax Service Professionals support will help you through it.

Taxpayers may e-file online with PriorTax, or use a tax preparer that is an approved electronic return originator (ERO). Under this arrangement, taxpayers may use approved software to file federal income tax returns and state income taxes in Missouri. You may also file electronically using approved, commercially available software programs, or you may have your return prepared and submitted by a licensed tax professional. If you wish to prepare your taxes in person, you may also use an authorized E-file vendor. The simplest and easiest way to file previous year taxes online is with PriorTax with the LIVE help of Tax Service Professionals.

You can use PriorTax to Efile tax online previous years taxes returns for up to 3 years after it is due.

Easy way to E file Previous Years Taxes Online

Simply create or log into your PriorTax account or create a new account to begin. Then click on the tab in the middle of the “My Account” page. Select the year you wish to begin previous year tax filing and begin filing your previous years taxes return online as E-file. From there, you’ll enter the income and expense information for the year you are filing. Of course, you can always rely on our free LIVE Tax Service Professionals for free. You will have the easiest experience filing taxes for both previous and current years.

Once your return is complete, any previous years taxes filings up to three years, you do not need to print out and mail in paper copies of your forms. This is because with PriorTax, the IRS supports e-filing prior tax year returns online electronically.

When you file your previous tax year taxes with PriorTax, you’ll get all the correct tax forms and the instructions for the previous tax year you are completing.

previous years taxes
previous years taxes

EFiling Previous Tax Years with PriorTax Online for Tax Returns

If you’re behind on your previous taxes, you can use PriorTax to E-file to get caught up. You can electronically Efile tax returns for the last 3 years. In 2023, you can file your 2022 return, plus returns for 2019, 2020, and 2021.

If needed, you can also file older returns by mail. Our Free Tax Service Professionals will help file with PriorTax for earlier years.

Keep in mind that the IRS usually only audits returns that are six years overdue or less. So your past six years of tax returns are typically the only ones that would be considered for an audit.

By Efiling Tax Online Previous Year Taxes Can I Still Get My Tax Refund?

Suppose you filed your return within three years after your original filing date. This deadline period is also applicable for tax credits such as the Earned Income Tax Credit (EITC). Tax deductions and credits can significantly reduce your tax burden, so it is in your best interest to file during this three-year window to receive your earned tax credits and refund. If you have a previous-year return you are still due, you can start today with PriorTax. 

Tax-Deductible Donations to Ukraine

Posted by admin on May 11, 2022
Last modified: May 11, 2022

Maximize Tax Return through tax deductible donations to Ukraine

As the War in Ukraine escalates, appeals have gone out for financial and material support for the refugees who have fled to nearby countries. In response, many people are making generous donations to U.S. charities. To be tax deductible donations, these donations need to follow the rules for contributions to a U.S.-based 501(c)(3) charity for use abroad and gifts to a foreign charity. The Internal Revenue Service publishes a list of all eligible 501(c)(3) organizations on Publication 78. Unfortunately, direct donations to a foreign charity or donations made to a domestic charity that then hands over the funds to a foreign charity are not tax deductible donations to Ukraine.

Unfortunately, there are restrictions when it comes to tax deductible donations to Ukraine charities outside of the U.S. One way around these restrictions is to donate to Friends organizations in the U.S. that raise tax deductible contributions. Many Friends organizations support foreign colleges or universities, and they all have the same downside: you can’t earmark your donation for a specific foreign charity.

Another option is through International Donor Advised Fund. These are funds set up worldwide by certain foundations, mutual funds, and brokerage firms. They have one restriction in common: they can’t give specifically to foreign charities. That restriction is lifted with some International DAF’s like the United Way Worldwide. It’s important that you make sure their screening process for foreign charities is sufficient if you’re setting up a DAF.

The third option for those looking to make a significant gift is to set up a private foundation. The biggest downside of a private foundation is an excise tax on foreign grants. It’s easy to set up a private foundation if you are in the very high income bracket and want ultimate control over where your donations go to Ukraine. If the war ends quickly or drags on, there will be human costs outside of Ukraine and inside. You can create a tax deductible donation to Ukraine and not have to do too much work to help this cause.

New tax preferences to support Ukraine

The Ministry of Finance of Ukraine has come up with some new tax changes to help victims of the ongoing armed conflict. The amendments aim to subsidize the production and purchase cost of goods and rights. Of which are then donations for counteracting the effects of the armed conflict in Ukraine.

The proposed changes include, amongst other things, the deduction of expenses incurred for production or purchase price of goods and rights that are subject to a donation against the effects of an armed conflict on Ukrainian territory made during a period from 24 February to 31 December 2022.

tax deductible donations
tax deductible donations

Here are 4 tax deductions allowed under Ukrainian tax law

Documented tax deductible donations and givings

A registered resident taxpayer may deduct a limited amount of documented expenses for the expenses mentioned below, so long as the total amount does not exceed their annual taxable income. Any amounts not deducted from a taxpayer’s annual income cannot be carried forward to be deducted from future year’s profits. Therefore, all expenses should be properly documented.

Charitable Contributions for Tax Deduction in Ukraine

Caring for others is important. By contributing to registered Ukrainian charities and not-for-profit organizations, you can deduct the money you donate from your taxable income. Unfortunately, you can only deduct a maximum of 4% of your annual taxable income.

Education Expenses for Tax Deduction in Ukraine

Expenses are incurred in the pursuit of higher education or in the pursuit of academic degrees. Parents who educate their children in Ukrainian institutions are eligible for tax deductions. The total amount of the deduction may not exceed 100% of annual general taxable income calculated as a salary.

Insurance Premiums for Tax Deduction in Ukraine

For 2022, the deductible amount on voluntary long-term life insurance or non-state pension insurance for the benefit of a taxpayer and his or her immediate family members has limits. For example spouse, parents, or children is limited to UAH 3,480 per month for the taxpayer. Although this limit may be higher if there are other persons insured from the same policy. The limit for payment related to the taxpayer’s immediate family members is half of the above monthly limit.

Mortgage Interest Expenses for Tax Deduction in Ukraine

Kudos if you’ve read this far. I wanted to make it as clear as possible that I’m not trying to talk down to everyone here. Unfortunately, not everyone will have time to read through full docs, so let’s keep it short and with less mumbo jumbo whenever possible.

Easy Tax Filing

Posted by admin on March 7, 2022
Last modified: March 7, 2022

Easy Free Tax Filing and Simple Tax Filing on PriorTax.com

When tax documents start to appear in our inboxes and pile up in our mailboxes, that can only mean one thing – the 2022 tax season is upon us. The 2022 tax filing season began on January 24th, when the IRS began to accept 2021 tax returns, so what can you do to ensure a simple and easy tax filing season this year through PriorTax.com?

What to prep in advance for easy tax filing and simple tax filing with PriorTax.com ?

PriorTax simplifies your tax filing, making easy tax filing possible. Otherwise you’ll want to have all of the relevant documents close to hand – either hard copies or PDFs will work, whichever is easier for you. So, do be sure to save all of those documents that you have been receiving via email and regular mail.

Remember that the primary purpose of gathering up all these documents is to ensure that you have all of your income information for 2021 to hand in order to accurately prepare your tax returns. This helps to minimize your tax bill and maximize your tax refund if you are owed one.

easy tax filing
easy tax filing

Depending on your financial and employment situation, your relevant documents should include two broad categories:

  • W-2 Forms that will detail information concerning your salaries, wages, and tips that you earn as an employee
  • 10099 Forms that will detail information concerning other sources of income. These are self-employment income and earnings like interest or dividends from banking and investment accounts

In addition to paperwork and information related to your income and expenses last year..

You’ll want to make sure that you have the following personal information:

  • Social Security and/or Taxpayer Identification Numbers as well as Birthdates for yourself, your spouse, and, if you have any, your dependents
  • Your Bank Account Number and Routing Number to receive your tax refund via direct deposit. (The IRS recommends filing electronically with direct deposit details to ensure an accurate return and quick refund processing.)

Easy Free Tax Filing for Single Filers Under 21

For those under 21 years old who need to prepare tax returns and are either single filers or married and filing separately, PriorTax.com offers a Free Basic Package for current year filing. This package can be an excellent choice for those who may be new to needing to file their tax return. Whether because you recently started your first job and/or started college.

The Basic Package uses PriorTax.com’s easy-to-use web application to help guide you through the process of submitting information about your

  • Wages,
  • Unemployment,
  • Interest,
  • and/or Dividends.

In addition, if applicable, this package can help you claim the Education Credit and/or Earned Income Credit (for filers without dependents). This ensures that you take advantage of credits available to you. This will help minimize your tax bill and maximize any tax refund you might receive.

If you’re currently in higher education, the Education Credit can help to reduce your tax bill. As an added benefit, if claiming the credit reduces your tax bill to less than zero, you may receive a refund on any taxes that were withheld from your paychecks in 2021.

You can claim an Education Credit when filing if you fulfill these requirements:

  • You or the 3rd party (family or friends) pay expenses related to your education (tuition, mandatory enrollment fees, and required course materials)
  • Enrolled at an eligible educational institution
  • The eligible student is listed on your tax return

The IRS doesn’t allow you to claim an Education Credit if you are listed as a dependent on someone else’s tax return. (Although they may be eligible to claim the credit on their return). College students can benefit from this credit by preparing and filing their tax return as single filers. PriorTax has a process that the Basic Package web application was designed to guide you through. 

More Simple Free tax filing options when you have easy tax filing obligations.

Even if your financial situation doesn’t allow you to take advantage of PriorTax.com’s Basic Package, don’t worry. There are still free tax filing options available to you. Visit the IRS’s website to take advantage of two options from the IRS Free File program.

If your adjusted gross income in 2021 was $73,000 or less, you could qualify for free guided tax preparation offers that will help you to prepare and file your federal tax return. And sometimes your state tax return too, for free. Use the PriorTax Customer Service to either inquire this year’s offers or to answer a few questions. IRS also provides Online Lookup Tool to receive a list of relevant offers. (Please note, with complicated IRS filing remember to create your account by accessing the IRS Free File provider’s website from the IRS website. This is to take advantage of the IRS Free File offer. The Free File program and commercial tax preparation offers from these providers are separate and not interchangeable.)

If your adjusted gross income in 2021 was more than $73,000 or you prefer to fill out and file taxes yourself, you can use the IRS’ Free File Fillable Forms. This option is available to all income levels. It provides free electronic forms for you to file out and file yourself. However, you’ll need to be comfortable using IRS forms, instructions, and publications as this option won’t offer any tax preparation guidance and only limited calculations.

PriorTax Top Tax Professional Support and Tax Packages for Easy Tax Filing

Looking for more assistance with your tax returns than Free File Fillable Forms can provide? If you don’t qualify for an IRS Free File Offer, consider one of the affordable and easy-to-use tax filing options at PriorTax.com. Like those free tax filing options, the easy-to-use web application works by asking you to answer simple questions regarding your work and financial situation and doing all the math for you. In addition to several different tiers of packages, you can either choose Complete Additional Services as a package. Or individually select additional services so that you only pay for what you need.

This tax season, visit PriorTax.com for easy tax filing and essential tax tips. We’re here to help with a range of resources and services to help you file your taxes. We can help whether you’re a student with simple tax filing obligations in need of our Basic Package to claim education credits on your return this year or you have a wide portfolio of business. It can also be personal income that could benefit from our Platinum Package and for any tax situation in between.

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.

2021 Tax Brackets

Posted by admin on February 9, 2022
Last modified: February 9, 2022

Complete Guide to Tax Brackets 2021

As 2021 draws to a close and we look back at the year that’s been, let’s take a moment now to look at what the 2021 tax brackets mean for you and the money you earned over the past year.

What are tax brackets, and what are they used for?

There are seven federal tax brackets by the IRS to determine how much federal income tax you owe on any income you earned during the year. Each bracket corresponds to a percentage rate: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. 

The U.S. federal income tax system is a progressive tax system. This means that you are subject to higher federal income tax rates when you have higher taxable income. But, equally, you are subject to lower federal income tax rates when you have lower taxable income.

Calculating how much tax you owe will get complicated. How much tax you owe depends on which tax brackets for 2021 your total taxable income will fall into. Rather than finding the bracket and paying the corresponding tax rate on your entire taxable income, your taxable income is divided across all applicable brackets. Each subdivision is then taxed at the corresponding tax rate.

Why are there 2021-specific tax brackets?

Ahead of each tax year, the IRS publishes updated income ranges corresponding to each tax rate. This is to take into account inflation rates and is part of the wider inflation adjustments the IRS makes annually to sixty plus different tax provisions.

These adjustments are announced during the final quarter of the preceding year. For example, the changes for the current tax year, including the tax brackets, were announced on October 26, 2020. Taxpayers and tax professionals then use this information for taxes due in April 2022 (or in October 2022, when a filing extension has been requested).

What information do I need to read the 2021 tax brackets?

When looking at the 2021 tax brackets, you will need to know your total taxable income in 2021 and your filing status. Your total taxable income refers to the part of your gross income for the year that is subject to taxation. It will depend on your income tax filing status, the type of income you had, and your financial activity over the course of the year.

All U.S. taxpayers fall into one of five different filing statuses. The IRS uses this to determine your filing requirements, possible deductions and/or credits, and your tax rate. In determining your filing status, your marital status, your spouse’s year of death (if a widow/widower), and the contribution toward household expenses from members of your household. The IRS offers an online interactive tax assistant, “What Is My Filing Status?” on their website to help you figure out your filing status.

You will use these two pieces of information to identify where amongst the tax brackets your financial situation falls and what that means for your tax rate when it comes time to file your tax return.

With these details laid out, let’s take a look at what the tax brackets mean for each filing status and how you can use this information. Looking at the table for your filing status, identify the row corresponding to your taxable income range to determine how much tax you will owe.

Single Filers:

What do the 2021 tax brackets tell us about calculating the tax owed for single filers?

2021 Tax Brackets for single filers

Head of Household Filers:

What do the 2021 tax brackets tell us about calculating the tax owed for people filing as head of household?

2021 Tax Brackets for Head of Household Filers

Married Filers, filing jointly:

What do the 2021 tax brackets tell us about calculating the tax owed for married couples filing jointly?

2021 Tax Brackets for Married Filers Filing Jointly

Married Filers, filing separately:

What do the tax brackets for 21 tell us about calculating the tax owed for married couples filing separately?

2021 Tax Brackets for Married Filers Filing Separately

Looking for more tax tips to prepare you for the 2022 tax season? Then look no further than PriorTax.com. Visit today to keep up to date with important tax news. Learn more about our full range of tax filing services. PriorTax.com provides Free Tax Advice and have CPA or Professional Reviews available for certificate. Also check out our state of the art free Tax Calculator

We offer both prior year and current year tax filing services to help you keep on top of your income tax obligations past and present.

Stimulus Update

Posted by admin on January 25, 2022
Last modified: February 17, 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 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.