November 28, 2022 - Douglas Myser

2021 tax filing and tax benefits. With the upcoming tax filing season quickly approaching, some basic things should be looked at for many taxpayers, as these are benefits due them and ways to decrease any tax liability. First and foremost are penalties for non-filing. One of the worst penalties you can receive is the failure to file penalty. This is a 5% penalty on the principal amount of tax owed, for up to five months, 5% per month up to a 25% total penalty. You can use the tax extension, giving you until October 15th, to file, but if you owe, you must pay the tax with the extension. Then you need to make sure that all the credits and deductions that you qualify for, you receive. A good Tax Resolution Company will do that for you. 2021 tax filing and tax benefits.

In 2021, the IRS received about 19 million tax extensions and this year the date to file was October 17th, normally the 15th, unless it falls on a weekend or holiday. If you fail to file and owe, you could have the IRS Collection Division issue a IRS Wage Garnishment. If you were due a refund, then filing electronically would be the fastest way to get your refund, as opposed to filing by the mail. The IRS was backed up on tax returns, and the mail returns and Covid were the main reasons for it.

Taxpayers who are eligible would be wise to check and see if they qualify for the Earned Income Credit. This is for low and moderate income workers and gives those families a tax break. Having really good Tax Resolution Services can assure of getting all the Tax Credits you are entitled to. The Child Tax Credit, this can be claimed by families even if they received monthly advance payments during the last half of 2021. The Child and Dependent Care Credit gives families who pay expenses for the care of a qualifying individual so they can work, or look for work, it gives them a tax credit worth up to $4000 for one qualifying person and $8000 for two or more qualifying persons.