Recently, the Internal Revenue Service (IRS) announced that tax season will start a little later than usual. This year the IRS will begin accepting and processing 2020 tax returns on Friday, February 12, 2021.
In light of the December 27 tax law changes which brought a second round of Economic Impact Payments and other benefits to many, the IRS will use this additional time to update, program, and test their systems.
However, if you intend to work with a tax professional or use tax software, there's no need to wait. If you prepare your return now, not only will you have your taxes done and out of the way, but your filings will be transmitted to the IRS starting February 12.
Even with this new date in mind, your deadline to file is still April 15. To request an extension, make sure you do so by April 15. This may grant you until October 15 to file your 2020 tax returns. However, this is an extension for filing only. The IRS still requires one to pay any taxes due by the original filing date of April 15.
Filing one’s tax returns can be a complicated and sometimes daunting process. It’s never a bad idea to speak with a tax professional before filing or securing their services to file on your behalf.
Required minimum distributions (RMD) are scheduled for 2021 - there is no anticipated waiver. As a reminder, if you have taken RMD in the past you need to continue with your distributions annually. The age requirement has changed going forward to individuals turning age 72 by December 31 (formerly 70 1/2).
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your tax-filing strategy.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
Tax Filing Season Starts a Little Later This Year
February 08, 2021|