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Tax Season Delayed and Biden’s American Rescue Plan

Tax Season Start Delayed Due to Pandemic-Related Issues

Tax season is upon us, but taxpayers may have noticed that the start of the season has been delayed. As a result of pandemic-related issues, the Internal Revenue Service (IRS) announced that it will not be accepting and processing tax returns until February 12, 2021.

The delay in the start of tax season can be attributed to additional programming and testing of IRS systems that are needed to accommodate tax law changes made on December 27, 2020. This means that the IRS has to do extra work to make sure that all tax returns can be processed accurately.

It’s worth noting that taxpayers who are expecting a stimulus payment may also experience some delays. If you did not receive the full amount of the first or second stimulus payment, you can claim the missing amount through the Recovery Rebate Credit when you file your 2020 tax return.

However, you must file a tax return in order to claim this credit.

Congress Working on Biden’s $1.9 Trillion American Rescue Plan

On January 20, 2021, Joseph R.

Biden Jr. was sworn in as the 46th President of the United States. One of his first orders of business is to push for a $1.9 trillion American Rescue Plan in Congress.

The plan is designed to provide much-needed relief to individuals, families, and businesses that have been adversely affected by the COVID-19 pandemic.

One of the key components of the American Rescue Plan is direct stimulus payments of $1,400 to eligible individuals.

However, the eligibility criteria for the payments will be much stricter than in previous rounds of stimulus payments. The House Ways and Means Committee recently proposed that individuals earning $75,000 or less and married couples earning $150,000 or less should receive the full payment amount.

Anyone earning above those thresholds would receive a reduced payment amount, with the payments phasing out completely for individuals earning $100,000 or more and married couples earning $200,000 or more.

The American Rescue Plan also includes extensions of unemployment benefits and rental assistance, as well as funding for vaccine distribution and school reopenings.

The plan is expected to encounter opposition in Congress from Republicans concerned about the high cost of the plan and the size of the direct stimulus payments.

Conclusion

In conclusion, taxpayers should prepare for a delayed start to the tax season due to pandemic-related issues. It’s important to file your tax return on time to avoid any penalties or fees.

Additionally, Biden’s American Rescue Plan is expected to provide much-needed relief to individuals, families, and businesses that have been hit hard by COVID-19. Keep an eye on Congress to see how the plan develops and whether or not it will be passed into law.

Filing Tips to Make the Process Easier

Tax season can be a stressful time for many individuals, especially if you are not prepared and organized. However, with some tips and tricks, you can make the process of filing your taxes much easier and less daunting.

The IRS encourages taxpayers to file their taxes as accurately as possible and as soon as possible. This is especially important in 2021, as the agency is still dealing with the backlog of tax returns from the previous year due to the pandemic.

Filing your taxes accurately and promptly can help speed up the processing of your tax refund, if you are owed one. To make the process easier and more efficient, here are some tips to consider:

1.

Gather all your tax documents

Before you start filing your taxes, make sure you have all the necessary documents in hand. This includes (but is not limited to) your W-2 form, 1099 forms, mortgage interest statements, and charitable giving receipts.

Review all the documents carefully to ensure that the information is accurate, and notify the issuer if you notice any errors. 2.

Use tax preparation software

Tax preparation software is a great tool to help you file your taxes accurately and efficiently. You can use software to navigate through the complex tax code, answer simple questions, and fill in the appropriate forms.

Many software programs offer step-by-step guidance and support, and will even double-check your calculations for accuracy. The IRS even has a program called Free File, which provides free tax preparation and filing software for those who earn $72,000 or less.

This program can save you a lot of time and money as you file your taxes. 3.

Choose the right filing status

One of the most important decisions you’ll make while filing your taxes is choosing the right filing status. The tax code allows you to choose from five different filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child.

Each status has its own set of rules and requirements, so make sure you choose the one that is right for you. 4.

Double-check your math

Simple math errors can cause problems, delay the processing of your tax return or even trigger an audit. To avoid this, double-check your math and ensure your calculations are correct before submitting your tax return.

You can use a calculator, or just take a few extra minutes to review each line item and ensure all the numbers add up. 5.

Keep a copy of your tax return

Remember to keep a copy of your tax return and all supporting documents for your records. You may need to refer to them in the future, especially if you are applying for a loan or sending in an amended return.

Keeping an organized record of all your tax-related documents also makes filing your taxes next year much easier. In conclusion, filing your taxes accurately and efficiently can save you time and money.

Make sure you gather all necessary tax documents, use tax preparation software, choose the right filing status, double-check your math, and keep a copy of your tax return. With these tips, you’ll be better equipped to navigate the tax code and file your taxes stress-free.

In summary, preparing and filing your taxes accurately and efficiently is crucial, especially in 2021 with the additional pandemic-related challenges faced by the IRS. Gathering all necessary tax documents, using tax preparation software, choosing the right filing status, double-checking your math and keeping a copy of your tax return are all important steps that can simplify the tax filing process.

By following these tips, taxpayers can avoid the stress and potential penalties associated with incorrect or late filings. Ultimately, the goal of these tips is to make the tax filing process easier and more efficient, leaving more time for you to focus on other important aspects of your life.

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