Here’s What You Need to Know about the 2021 Tax Filing Season
While most of us are ready to bid 2020 goodbye, there’s just one more hurdle to climb: tax filing season.
The word alone has been known to fill accountants with joy and others with dread. The good news? We’ve put together a list of everything you need to know about the 2021 tax filing season – personal taxes and tax filing for small business included!
Let’s dive in.
What You Need to Know about the 2021 Tax Filing Season
Big Picture Updates
When it comes to filing your taxes in Greeley, you’ll need to note a few important tax dates for the upcoming season:
- Official start date to the tax filing season: Friday, February, 12, 2021
- Official tax filing due date: Thursday, April 15, 2021
In addition to a later start date, we’ll also be seeing some changes in the tax documentation itself.
For example, the standard deductions for both single filers and married couples filing jointly will be increased by a couple hundred dollars, and the income tax bracket will be raised in order to account for inflation rates.
Ways to Save $ This Tax Filing Season
Let’s get to the good stuff.
If you’re looking for ways to save money during this tax filing season, we encourage you to enlist the help of an outsourced accounting firm in Northern Colorado and consider these tax deduction options:
- Charitable deductions
- Medical deductions
- Business deductions
- Earned income tax credit
- Child tax credit
While we’ve only listed a handful, there are tons of other tax deduction opportunities to take advantage of this season. If applicable, these could help you immensely!
COVID’s Effect on the 2021 Tax Filing Season
COVID has touched almost every part of our lives, and our taxes are no exception. Luckily, it’s not all bad news!
In an effort to help the growing number of struggling Americans, the government provided financial aid through EIPs (Economic Income Payments) – otherwise known as stimulus checks – and PPP (Paycheck Protection Program) loans.
As a result, the stimulus checks will not count as taxable income, and the PPP loans will be forgiven, provided proper procedure has been followed and a loan forgiveness application has been filed.
However, it’s important to note that unemployment will be treated as taxable income. This might affect how much you owe in the end, but there are plenty of external factors to consider.
If you’re interested in learning more about COVID’s effect on taxes, see what the Washington Post has to say about it here.
Our advice?
Whether you’re filing for yourself or tax filing for a small business, you’ll want to get it done early and recruit the help of a professional!
In order to prepare your taxes correctly, efficiently, and timely, you should hire a Greeley accountant from Yeater & Associates. We’d love to be your perfect partner – personal tax preparation and tax filing for small businesses included!
At Yeater & Associates, we offer professional bookkeeping advice and CPA services – and we’re good at what we do! Visit https://yeaterassociates.com/contact/ to learn more.
