Preparing for Your Tax Return in 2021

          At this point the Internal Revenue Service (IRS) has not released the date when it will start to accept Tax Returns. However, we do know about many of the changes coming this Tax Season. As a reflection of what happened in 2020, there are some different things to consider when filing in 2021.

          Recovery Rebate Credit. This would apply to those who never received their Economic Impact Payment (EIP) in 2020, or what they got was less than what they qualified for. Refund Interest Payments. If you filed on time and got your Tax Refund after April 15, 2020 it was late, and the IRS paid interest for the delay in sending the refund. That interest is also income that must be declared. The appropriate form will be sent soon.

Another point to keep in mind is that you should never depend on a Tax Refund to arrive at a particular time. It usually takes 3 weeks, but certain credit claims will extend the process to reduce the risk of fraud. So an amount of patience will be needed. To find out exactly which documents you will need to gather to make the filing process go smoother, talk to your Qualified Tax Professional.

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