Three 2021 Tax Season Differences

Tax season is around the corner, as a
taxpayer you need to know what changes affect you this tax season. Since 2020
wasn’t exactly a “normal” year, you should not expect tax season to
be either. SWVA Tax & Accounting wants to share information relevant to accounting and taxes
to stay current. Here are three changes this tax season you need to know:

1.    
The
IRS recently announced it will start accepting 2020 tax returns on Friday,
February 12, 2021. Typically, tax season starts in January but has been pushed
back to February. The IRS is testing and programing a new system that follows
new tax law changes made by Consolidated Appropriations Act, 2021 (CAA 2021),
P.L 116-260, which was made into law on December 27, 2020. These changes also take
into consideration the second 2020 stimulus payments made to taxpayers. It’s estimated
the IRS will process more than 150 million tax returns this year. Make sure you
have the needed documents to file as:

·       
2020
return

·       
Year-end
Forms W-2

·       
Forms
1099

·       
Forms
1095-A

·       
Any
other tax information your accountant may need

SWVA Tax & Accounting is here to help you with all your
tax needs click 
here to get started today!

2.    
Knowing
the exact amounts of your 2020 stimulus payments is information your accountant
needs. The two stimulus payments you received in 2020 are not considered
taxable income by the IRS. But for example, if you owe back payments in child
support, your stimulus payments may go towards back payments. Or you have a
negative bank balance, the bank can use part of your stimulus payments to
satisfy the negative balance. Tell your accountant how much your stimulus
payment was and if it went towards paying any debts. Regardless, concealing how
much you received in stimulus money from your accountant could delay refund
payments or get you in trouble with the IRS.

3.    
A celebrated part of 2021 is the COVID -19 vaccine is available and people are getting
vaccinated. The not so good part is only a small fraction of the population has
received the COVID-19 vaccine. What does this mean for you and SWVA Tax &
Accounting? We must leverage technology so we can minimize personal contact
while operating a business. At SWVA Tax & Accounting you can upload all
your tax documents necessary for your 2020 tax filing. All you need to do is
click
here it’s a safe and simple process. We
recommended you create a profile to make it easier for you. You can always send
SWVA Tax & Accounting a
message if you have questions regarding your
tax preparation. Be sure your contact information is current so SWVA Tax &
Accounting can reach you. If you have to submit your paper tax forms please
call 540-250-3198 to let them know. 

Continue to stay healthy and safe so
you can be your best this year. SWVA Tax & Accounting is here to help you
with all your tax needs. From bookkeeping to filing your taxes, trust us to get
the job done right the first time. Call us at 540-250-3198 to schedule an
appointment or book
online. You run the business, we’ll run the
numbers. 

 

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