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5 Reasons why Americans who don't usually file tax returns should file for 2021.

Reason #2: EARNED INCOME TAX CREDIT (EITC): If you earned income in 2021 (for example, as an employee or through gig economy work) and your total income was below $57,414, you may qualify for this credit. The online EITC Assistant (link below) can help you determine your eligibility.

Upload your tax documents securely from the comfort of your home. Visit www.rapidrobintaxes.org

Over the next five days we will discuss 5 Reasons why Americans who don't usually file tax returns should file for 2021. The IRS recently reminded Americans of five important opportunities that are only available to those who file.

1. CLAIM A REFUND OF TAXES WITHHELD: If federal income tax was withheld from wages or other payments you received in 2021, the amount withheld may be more than you owe. By filing a return, you can claim an IRS refund of any excess withholding.

Book a virtual appointment with one of our tax professionals. www.rapidrobintaxes.org or call 713-510-5843.

IRS Deadline Approaching to File W-2s and 1099s – Did You Know?

The IRS recently reminded taxpayers who paid employees or independent contractors in 2021 to file all required payment reporting forms by January 31. Missing this deadline may result in IRS penalties.

If you operate a business and pay employees, you generally must file a Form W-2 for each employee with the Social Security Administration (SSA) by January 31. You must also send each employee a copy of their W-2.

In addition, if you have business income, including earnings from gig economy work or other self-employment activities, you may need to file 1099 forms by January 31. Generally, you must file Form 1099-NEC anytime you pay $600 or more to an independent contractor in a calendar year. Common situations that trigger a 1099-NEC filing requirement include subcontract arrangements, along with paying a freelance designer, writer, photographer or musician.

You may also need to file Form-1099 MISC if you paid $600 or more in rent for a workspace, or paid any amount in royalties. You should submit 1099 forms to the IRS, not the SSA. As with W-2s, you must also provide a copy of each 1099 to the person who received the payments reported on the form.

Taxpayers who deduct business expenses must declare on their returns whether they have filed required 1099s. A business tax professional can help you determine whether you need to file W-2 or 1099 forms, and may also be able to help you submit the forms electronically. E-filing can prevent delays from having to order and complete paper forms.

5 Reasons Why Americans Who Don't Usually File Tax Returns Should File for 2021

The IRS officially opens for tax filing season today on January 24th. Even if you are not required to file a 2021 tax return under IRS rules, doing so may put additional money in your pocket. The IRS recently reminded Americans of five important opportunities that are only available to those who file.

CLAIM A REFUND OF TAXES WITHHELD: If federal income tax was withheld from wages or other payments you received in 2021, the amount withheld may be more than you owe. By filing a return, you can claim an IRS refund of any excess withholding.

EARNED INCOME TAX CREDIT (EITC): If you earned income in 2021 (for example, as an employee or through gig economy work) and your total income was below $57,414, you may qualify for this credit. The online EITC Assistant (link below) can help you determine your eligibility.

CHILD TAX CREDIT (CTC): You may be eligible to claim this credit if you have dependent children under age 18. The standard credit amount is $3,600 per qualifying child under age 6, and $3,000 per qualifying child age 6-17.

RECOVERY REBATE CREDIT: If you did not receive a third economic impact payment (EIP) in 2021, or if you got a smaller EIP than you were entitled to, you may be able to claim this credit. (Note: EIPs were also sometimes called stimulus payments.)

AMERICAN OPPORTUNITY TAX CREDIT (AOTC): If you paid higher education expenses (tuition and school fees) for yourself, your spouse or a dependent, you may receive reimbursement for some of those expenses through the AOTC.

All of the above credits are wholly or partially refundable, meaning that you can receive the credit as an IRS refund even if you do not owe any tax. A tax professional can help you determine whether you qualify for a refund, and if so, help you claim it by filing a 2021 tax return.

EITC Assistant: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

The IRS is accepting 2021 tax returns. The fastest way to get your refund is by choosing direct deposit as your refund method. Beat the rush, and file your 2021 returns with Rapid Robin Taxes. Book your virtual appointment online at www.rapidrobintaxes.org or call 7113-510-5843.

The IRS has announced that the individual tax filing season will start on Monday, January 24th, 2022 and the current deadline for most people to file 2021 tax returns and pay any taxes owed is Monday, April 18, 2022.

How would you like to file taxes safely in the comfort of your home or office? Rapid Robin Taxes offers nationwide virtual tax services. With our secure portal you can upload all of the necessary documents on your cell phone or computer.

Give our office a call (713-510-5843) if you're looking for a Certified Tax Professional that is looking to maximize your federal tax return.

Important Letters for 2021 Tax Credits – Did You Know?

The IRS has begun sending Letter 6419 about the 2021 Child Tax Credit (CTC) to millions of U.S. households. By the end of January, many taxpayers will also start receiving IRS Letter 6475 about Economic Impact Payments (EIPs, also called stimulus payments). Taxpayers may need to refer to these letters to prepare their 2021 tax returns and claim their full credit amounts.

If you received advance payments of the 2021 CTC, Letter 6419 will show the total amount of those payments. Other information in the letter will include how many qualifying children the IRS used as the basis for calculating your payment amounts.

You may also look up the total of your 2021 advance CTC payments by checking the CTC Update Portal (link below). If you did not receive advance payments but qualify for the CTC, you may claim your entire credit by completing a 2021 tax return. Even if you owe no tax and ordinarily do not have to file a return, filing for 2021 may enable you to receive the CTC as an IRS refund.

IRS Letter 6475 (“Your Economic Impact Payment”) refers to the third round of pandemic EIPs, known as EIP3, that the IRS began issuing in March 2021. If you received an EIP3 direct deposit, check or prepaid debit card, or a 2021 EIP “plus-up” payment, watch for Letter 6475 in late January or early February. If you qualified for EIP3 or a “plus-up” payment but did not receive it, or your payment amount was too low, you may be able to claim the Recovery Rebate Credit on your 2021 tax return to get the remaining amount you are owed.

Store both of these IRS letters safely with your tax records, so you can refer to them when preparing your tax return. A tax professional can help you figure your total credit amounts, and electronically file your return to receive your refund as quickly as possible.

IRS CTC Update Portal: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st - December 31st, 2021 quarter of year is January 18th, 2022. You may be able to skip the January 18th payment if you file your 2021 return by January 31st, 2022 and pay all tax due.

For payments made using IRS Direct Pay, you can make payments until 11:45PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.

Tax Filing Season Start

The IRS has announced that the individual tax filing season will start on Monday, January 24th, 2022 and the current deadline for most people to file 2021 tax returns and pay any taxes owed is Monday, April 18, 2022.

Standard Mileage Rates for 2022 – Did You Know?

The IRS has updated the 2022 standard mileage rates for vehicle uses that qualify for a tax deduction. These rates apply for most passenger vehicles, including cars, vans, SUVs and pickup trucks. Here are the main mileage rates for this year:

- 58.5 cents per mile for business use of a vehicle (up 2.5 cents from 2021)
- 18 cents per mile for certain medical purposes (up 2 cents from 2021)
- 14 cents per mile for vehicle use for qualifying charitable work (unchanged)
- 18 cents per mile for Armed Forces members who have a permanent change of station, and use their vehicles for relocation (up 2 cents from 2021)

In most cases, taxpayers who qualify to claim a vehicle expense deduction may either use the standard mileage rate or actual expenses to figure their deduction. However, if you use your car or truck for business, you must use the standard rate for the first year you put the vehicle in service if you want to preserve this option for future years.

A tax professional can help you determine whether the standard mileage rate or actual expenses will result in a larger deduction in your circumstances. Keep in mind that if you choose to deduct actual expenses, you will need to keep detailed records of all vehicle-related costs.

Deferred Social Security Tax Payment Deadline - Did You Know?

The IRS allowed employers and self-employed people to choose to defer the employer's portion of their social security tax payments in 2020.

For those that chose to defer payment, half of that deferral will be coming due on January 3rd, 2022 and the second half will be due on January 3rd, 2023.

Payment can be made through the Electronic Federal Tax Payment system by employers and individuals. Individuals may also use Direct Pay.

EFTPS: https://www.eftps.gov/eftps/
Direct Pay: https://www.irs.gov/payments/direct-pay