Three 2021 Tax Season Differences

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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!

  1. 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.
  2. 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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