IRS – Tax Updates May – 2021

Tax Filing Date 2021

The IRS has delayed tax filing date for 2020 taxes to Monday, May 17, 2021.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. Estimated tax payments are paid quarterly to the IRS by people whose income is not subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income.

Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals

Use Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to figure the amount to claim for qualified sick and family leave equivalent credits under the Families First Coronavirus Response Act (FFCRA) and attach it to your tax return.

Unemployment Benefits News

The Internal Revenue Service announced it will automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. IRS to recalculate taxes on unemployment benefits; refunds to start in May

For Unemployment benefits, The Stimulus act makes the first $10,200 in unemployment benefits tax-free in 2020 for taxpayers making less than $150,000 per year.

Recovery Rebate Credit

Latest IRS information regarding refund timing for returns claiming a Recovery Rebate Credit that do not match IRS calculations. The IRS initially indicated these refunds would arrive within the normal 21-day window, they recently indicated they may take an additional 10 to 14 business days. 

More information from IRS on the Recovery Rebate Credit link.

Filing Extensions

Taxpayers who require more time for filing their taxes after the May 17, 2021, deadline can request a filing extension until October 15, 2021, by filing Form 4868 through a tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 15, 2021, to file their 2020 tax return; it does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

How to File Taxes for Free

IRS Links for filing tax returns for free and other tax guidelines

Resolving Disputes with IRS

From IRS Website, Preventing and Resolving Disputes with IRS

Published by Mews News

Blogging from the Pacific Northwest, outdoor enthusiast, photographer, project manager and Certified Digital Forensics Examiner

One thought on “IRS – Tax Updates May – 2021

  1. My home is a “rabbit habitat” , also! It’s also a “haven” for squirrels and rats (ugh) ! Can’t put out poisons for rats ’cause they may provide poisonous feed for the raptors … always circling high above…

    Like

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