Don’t Miss Out: Here’s the Important Tax Information You Need to Know
With tax season rolling around, it’s essential to stay up-to-date with any changes or updates that may affect your filing. Keeping abreast of new developments can be a challenge, though, especially if you’re not familiar with the tax world. If you’re wondering what crucial tax information you need to know to ensure a successful filing, you’re in luck. This article will provide you with a comprehensive guide to crucial tax information you don’t want to miss.
Tax Deadlines and Payments
First and foremost, one of the most important pieces of tax information you need to know is the deadlines for filing and paying your taxes. Typically, the deadline for filing your taxes is April 15th; however, there may be instances where this date changes, so be sure to check current regulations. In addition to the filing deadline, you’ll also want to check the deadline for making any tax payments. Keep in mind the IRS may assess penalties and interest if you miss the payment deadline.
Change in Tax Laws
As is often the case, tax laws and regulations can change frequently. As such, it’s essential to keep abreast of any changes that may affect your income or deductions. Some recent changes to tax laws include:
1. Change in Tax brackets: For the current tax year, the IRS has adjusted the tax bracket rates to account for inflation.
2. Increase in Standard Deduction: The standard deduction has increased, allowing taxpayers to reduce their taxable income further.
3. Elimination of the Health Care Penalty: As of the 2020 tax year, taxpayers are no longer required to pay a penalty for not having health insurance.
Tax Benefits and Credits
Be sure to know and understand any tax benefits or credits you may be eligible for, as these can help reduce the amount you owe or increase your refund. Some common tax benefits include:
1. Retirement Savings Contribution Credit: This credit is available to lower-income taxpayers who contribute to their retirement accounts.
2. Child Tax Credit: Parents with dependent children may be eligible for this credit.
3. Earned Income Credit: Eligible taxpayers who have earned income below a specific threshold may qualify for this credit.
Tax Return Mistakes to Avoid
Lastly, it’s essential to avoid making common errors when filing your tax returns. Some of these mistakes may include:
1. Incorrect Social Security Number: Failing to provide the correct Social Security number for yourself or your dependents may result in delays or issues with your return.
2. Math Errors: Ensure that all calculations are correct to avoid costly mistakes.
3. Failing to Sign the Return: Signing your return is essential and is necessary for the IRS to process your return.
In conclusion, staying on top of tax information can be a challenge, but it’s essential to avoid costly errors and ensure a successful filing. Keep abreast of any tax law changes, understand your entitlement to any benefits or credits, and avoid common tax return mistakes. Following these tips and knowing the crucial tax information discussed in this article will put you on the path to a successful filing.
