As you know, 2021 brought a unique set of challenges, changes, and opportunities. As we enter tax season, I want to make sure you’re prepared. Here’s what you need to know before you file.
Dates to Know: Filing Deadline: Filing can take place from January 24 through April 18. Extension Deadline: Make sure you file for an extension by April 19, 2022. If you ask for an extension, you must file by October 17, 2022. Refunds: While there’s no guarantee when your refund will come through, the IRS says that filing electronically and choosing direct deposit as your payment method may speed up the process. 2021 Tax Brackets: According to the IRS, the highest tax rate will be 37% for individual single taxpayers whose income is above $523,600. For married couples who file together, this number goes up to $628,300. If you’re married but filing separately, it will be $314,151. 2021 Deductions: Standard: A standard deduction is one where you have not made any itemized deductions and are just working with the part of your income that is non-taxable. For 2021, this will be $12,500 for single filers and $25,100 for married couples filing together. Itemized: Itemizing your deductions takes more time and effort but may be beneficial if you end up with what more than a standard deduction will give you.
Making sure your taxes are correct is crucial. It is best to speak to a professional to help you get more out of your tax return.