Tax filing season is upon us, and many people find that filing their taxes is highly stressful, wondering if they will get a refund this year or be paying taxes. If you are among those, rest assured, you are not alone. Like many taxpayers this year, you may have stimulus payments, unemployment income, and PPP loans to consider when filing your 2020 taxes.
Even though the pandemic may have made filing taxes more stressful than ever, it’s important to take a deep breath and maybe even consider enlisting professional help for this tax season. A lot of people are reaching out to tax professionals, including Corporate Capital in Nevada for help with their tax returns.
Here are the important dates for the 2021 tax filing season:
March 1 – March 10th
Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.
Monday, March 15th
This is the due date for S Corporation (1120s) or Partnership (1065) tax returns or the time to request an extension on the business tax filings.
Thursday, April 15th
This is the due date for filing your 2020 Personal (1040), C Corporations (1120) and Trust returns (1041) or the time to request an extension for more time to file.
Thursday, April 15th
This is the due date for paying any 2020 taxes you owe to avoid interest charges and penalties.
Wednesday, September 15th
This is the due date for you to file your S Corporation (1120s) or Partnership (1065) tax returns if you requested an extension.
Friday, October 15th
This is the due date for you to file your 2020 Personal (1040), C Corporation (1120), or Trust (1041) tax returns if you requested an extension.
If you are looking for tax deductions or tax credits as well as COVID-19 relief for your 2020 tax contributions, consider filing early. This can also aid you if you have not gotten your federal COVID-19 relief payments yet, as filing your taxes can expedite that refund (as long as you are eligible for that relief). If you are filing personal taxes, using your favorite online tax program can work, but if you are a business owner, you will do better if you turn to professional services for tax filing help. With that said, we are encouraging both individuals and businesses to use a profession tax preparer or CPA to file their 2020 tax returns with the IRS.
What tax breaks could you qualify for from the COVID-19 pandemic?
Federal legislators have implemented some welcome changes to help people and small businesses alike to find some financial relief during the pandemic. One of these changes is the earned income tax credit. This means that if you are a small business owner and you were given a tax-free forgiven Paycheck Protection Program loan, you can deduct your business expenses covered by the money you received.
For those who are self-employed, you may qualify for both a sick leave and family leave tax credit thanks to the Families First Coronavirus Response Act.
When it comes to any unemployment benefits you took in 2020, you will still owe taxes on those payments if you didn’t make sure you had withholdings taken out at that time. And if you received unemployment payments, but you are married and your spouse was still employed, you could still owe taxes, even if you did set up withholdings.
If you work from home as an employee of a company, you won’t be able to take deductions for your home office. You still have to have your own business to deduct your home office from your taxes.
Some good news is that your stimulus checks don’t count as income, so you don’t have to worry about owing taxes on them at least. And if you haven’t received your second stimulus check or received a lesser amount than you expected, you are allowed to claim the missing payment using the Recovery Rebate Credit.
This year, the IRS recommends filing electronically as soon as you are ready. This will help you get your refund faster, especially if you use direct deposit. Just make sure you have all the information you need ready to go. If you are nervous about filing your 2020 taxes, our experienced team can help. We have CPAs, bookkeepers and accountants to answer any questions you may have before filing your 2020 tax return.
Our Corporate Capital team offers corporate accounting and bookkeeping services, as well as tax planning and preparation. By helping you create a bookkeeping plan that best fits your needs, we can talk about your current tax liability and finances, offer you a quarterly review (of profit and loss, your estimated Nevada tax liability, fixed asset list, and itemized detail list), and advise you on plan setup and tax strategy to balance any excess profits you have made. We also provide a reconciliation of year-end general ledger accounts, 1099 tax forms, and financial statement preparation.
If you have questions, we welcome you to contact Corporate Capital at 855-371-0070 to speak with one of our tax professionals. With the right help, filing your taxes does not have to stress you out!