Get Ready:
2021 is Coming
Well well... We guess 2020 had to end sometime!
With everything going on, there were quite a few adjustments to taxes this year.
What does that mean for filing next year?
This year there are a few main elements to factor in regarding credits and refunds....
Recovery Rebate Credit/Economic Impact Payment:
If you received an Economic Impact Payment, you should Keep Notice 1444 with your tax records.
You may qualify to claim the Recovery Rebate Credit on you 2020 federal income tax return if you either didn't receive an Economic Impact Payment or it was less than $1,200 ($2,400 if married and filing jointly).
If you didn't receive the full amount, you may be able to claim this credit when you file in 2021.
Interest on Refunds Taxable
If you received a federal tax refund in 2020, you may have been paid on interest. These payments are taxable and need to be reported when you file federal income tax returns.
The Best Part About Taxes... Refunds
The IRS is urging all taxpayers to be patient when it comes to their refunds.
For example, don't utilize "future" refund money to pay bills or buy large priced items in expectation of the refund arriving at a certain date.
(In fact, we just posted about this on Instagram - if you aren't following us click here to get the most recent updates and tips)
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