Newest IRS Information Update: Changes to Tax Filing Procedures in 2021
The Introduction
The Internal Revenue Service (IRS) has updated its tax filing procedures for the year 2021. These changes are aimed at making the tax filing process more convenient for taxpayers while ensuring that the IRS is able to collect accurate tax revenue. In this blog article, we will provide you with an update on the latest IRS information and what it means for you.
The Body
Tax Filing Deadlines
One of the most significant changes in the IRS tax filing procedures for 2021 is the extended deadline for tax returns. Usually, the deadline for filing income tax returns is April 15. However, in 2021, the deadline has been extended to May 17. This extension gives taxpayers an additional month to file their returns and pay their taxes.
In addition, taxpayers who need additional time to file their returns can request an extension until October 15. However, it is important to note that this extension only applies to the filing of tax returns and not the payment of taxes. Taxpayers must still pay their taxes by the May 17 deadline to avoid penalties and interest charges.
Unemployment Benefits
Another important change in the IRS tax filing procedures for 2021 is related to unemployment benefits. Many taxpayers received unemployment benefits in 2020 due to the COVID-19 pandemic. The IRS has clarified that these benefits are taxable income and must be reported on the tax return.
Fortunately, taxpayers who received unemployment benefits can take advantage of a new tax break. The American Rescue Plan Act of 2021 signed into law by President Joe Biden exempts the first $10,200 of unemployment benefits from federal income tax for taxpayers who meet certain income requirements.
Stimulus Payments
Stimulus payments, also known as Economic Impact Payments, were a key aspect of the government’s COVID-19 relief efforts in 2020. The IRS has confirmed that these payments are not taxable income and do not need to be reported on the tax return.
If you didn’t receive one of the stimulus payments in 2020, you may still be able to claim it as a refundable tax credit on your 2021 tax return.
The Conclusion
In conclusion, the IRS has made important changes to tax filing procedures in 2021. These changes include extended deadlines, updated rules on unemployment benefits, and clarification on stimulus payments. Taxpayers are encouraged to take advantage of these changes to make the tax filing process easier and more accurate. If you have any questions or concerns, consult with a tax professional to ensure that you’re meeting your tax obligations.
