2021 Tax Preparation Checklists Now Available

2021 Tax Preparation Checklists Now Available

Help yourself (and us!) make tax preparation easier by using these handy Checklists to pull together your tax materials for 2021. With another year of tax law changes and new programs, these Checklists will ensure you’ve got everything you need to file.

Please click on the Checklist name below to download a copy of the checklist. If you prefer, we can email it to you (just call or email Kimberly at kimberly@premiercpaservices.com to request your copy). You can also download both forms here.
Remember: We’re back open on Fridays now for the busy tax preparation season. Please contact us with any questions or concerns you may have.

Venmo, PayPal and Cash App to Begin Reporting Payments of $600+

If you rely on payment apps like Venmo, PayPal and Cash App for your business, you should be aware of a new tax law that took effect this year. Third-party payment processors will now report your business transactions to the IRS if they exceed $600 for the year — and send you a Form 1099-K with this information. (Previously they were required to send you Form 1099-K if your gross income exceeded $20,000 or you had 200 separate transactions within a calendar year.)

The new rule applies to payments for goods and services transactions — NOT for personal payments to your roommate for rent, for example, or to a friend when splitting dinner costs.

Note that you should already be reporting income over $600 to the IRS on your 1040, whether or not you receive a Form 1099-K. This new rule just means the IRS will be able to cross-reference the amounts beginning with your 2022 tax return.

 

Use ID.me for Easy IRS Access

The IRS is now using ID.me to help ensure the privacy and confidentiality of your information when using IRS tools, including:

If you already have an IRS user name, you may continue to use your existing credentials to sign-in — but you will be prompted to create an ID.me account for future access. To verify your identity with ID.me, you’ll need to provide a photo of an identity document, such as your driver’s license, state ID or passport. You’ll also need to take a selfie with a smartphone or a computer webcam. Once your identity is verified, you can securely and easily access IRS online services.

Tax Filing Begins Jan. 24

The IRS will begin accepting and processing 2021 tax year returns beginning next Monday, January 24. The IRS urges you to file electronically to speed processing and refunds — most people receive their refund within 21 days when they use direct deposit.

Note that the tax filing deadline will be April 18 — for both federal and Georgia income taxes. The due date is April 18 instead of April 15 because of the Emancipation Day holiday in the District of Columbia. If you request an extension, you will have until Monday, October 17, 2022, to file.

Money Brief: Report Virtual Currency Transactions

If you received, sold, exchanged or otherwise disposed of any financial interest in virtual currency — like Bitcoin — you’ll need to provide us with that information so it can be included on your Form 1040.

Money Brief: UGA Business Webinars

UGA’s Small Business Development Center offers a wide variety of online training programs to help new business owners, such as “Writing a Business Plan,” “QuickBooks” and “Hiring to Win.” Register today to learn more about operating your small business.

Timely Tax Tips Help Ensure Correct Returns

Timely Tax Tips Help Ensure Correct Returns

When you provide your paperwork to Premier CPA Services, you’re entrusting us to file your tax return accurately and efficiently. We use sophisticated software to handle the math, find common errors and flag missing information. But we also use our years of experience to ensure you get all the valuable credits and deductions due to you.

We’ve created Checklists for both business and personal returns to ensure you provide us with all the necessary materials to prepare your return. You can download those here:

Follow these tips

To further ensure the accuracy of your return, please consider these additional tips:

  • Choose Direct Deposit for your refund (and verify bank routing and account numbers).
  • Verify Social Security numbers.
  • Double-check the spelling of all names.
  • Confirm filing status (i.e., single, married filing jointly, married filing separately, or head of household).
  • Check the final numbers to ensure all income and expenses are accounted for correctly.
  • Review credits and deductions for things like the earned income tax credit, the child and dependent care credit, and the recovery rebate credit.
  • Sign all forms.
  • Return them to us in a timely manner so we can file your forms on time.

Thank you for entrusting us with your tax return. Please let us know if you have any questions or concerns about your tax files.

Tax Tip: Claim Dependent Credit

If you don’t qualify for the child tax credit, you may still be able to claim credit for other dependents, up to a maximum of $500 per dependent. The credit starts to phase out for incomes above $200,000 single, $400,000 married filing jointly.

Dependents must meet certain conditions, including:

  • Be age 17 or older.
  • Have individual taxpayer identification numbers.
  • Be a parent or other qualifying relative you support.
  • Be an unrelated dependent who lives with you.

You can claim the credit if:

  • You claim the person as a dependent on your tax return.
  • You cannot use the dependent to claim the child tax credit or additional child tax credit.
  • The dependent is a U.S. citizen, national or resident alien.

If you’re unsure whether you can claim someone as a dependent, please contact us for details.

Business Returns Due March 15

Don’t forget! While personal tax returns are due April 15, business and corporate returns are due on March 15. To get your business return done on time, please have all your materials to us no later than February 22.

Access your IRS information online

Online Account is a website system where you can securely access your individual account information. You can:

  • See any amounts you owe to the IRS
  • Make a payment, if due
  • View balance details by year
  • Review payment history, including any scheduled or pending payments
  • Review payment plan details and payment plan options, or request a payment plan
  • Get digital copies of select notices from the IRS
  • View any Economic Impact Payments (EIP) you received
  • Review key information from your most recent tax return, or access your tax records via Get Transcript

To gain access to Online Account, you’ll need to create an account by going through a rigorous identity verification process. Click here for more details.

Tax Tip: Sick and Family Leave Credits

If you are self-employed, you may be eligible to claim tax credits for leave taken between April 1, 2020, and December 31, 2020, due to COVID-19 in which you were unable to work or telework for reasons relating to your own health or that of a family member.

Form 7202: Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals will be used to claim the tax credit passed as part of the Families First Coronavirus Response Act (FFCRA). The credits will help offset your federal income tax. Note that you may also be eligible in 2021 for leave taken between January 1, 2021, and March 31, 2021.

2020 Tax Preparation Checklists Now Available

2020 Tax Preparation Checklists Now Available

As promised, we have put together a checklist to help you pull together your tax preparation materials for 2020. With all of the CARES Act, Payment Protection Program loan and other changes to tax law last year, we expect plenty of questions and confusion.

Please click the images below to download a copy of the checklist (personal or business). If you prefer, we can email it to you (just call or email Amber at amber@premiercpaservices.com to request your copy).

2020 Personal Tax Preparation Checklist

 

2020 Business Tax Preparation Checklist

 

Remember: We’re back open on Fridays now to handle the busy tax preparation season. Please contact us with any questions or concerns you may have.

Money Brief: Where’s My Money?

If you have not yet received your second Economic Impact Payment, you can check the status at irs.gov/coronavirus/get-my-payment. Direct deposit began on January 4, with mailed checks following that. You’re eligible for the new stimulus payment of up to $600 for individuals or $1,200 for married couples, and up to $600 for each qualifying child if:

  • You are not claimed as a dependent on someone else’s income tax return.
  • Your adjusted gross income for 2019 is up to $75,000 for individuals or up to $150,000 for married couples filing jointly and surviving spouses (payments are reduced or eliminated for filers with income above those amounts).

EIPs are an advance payment of the Recovery Rebate Credit, which will appear on the 2020 Form 1040 or Form 1040-SR.If you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return. The credit is figured like the Economic Impact Payment, except that the credit eligibility and the credit amount are based on the 2020 tax year information, including income.

Money Brief: 501(c)(4) Applications

The IRS is requesting organizations that want to file Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), to file electronically. This will make the application easier to complete and reduce errors, while shortening IRS processing time. The required user fee for Form 1024 is $600, which can be paid fee through pay.gov/public/home.

Money Brief: Tax Filing Season Begins Feb. 12

The IRS will begin accepting and processing 2020 tax year returns no sooner than February 12, 2021. The February 12 start date allows the IRS time for programming and testing following the recent tax law changes. The IRS urges taxpayers to file electronically with direct deposit to speed processing and refunds — nine out of 10 taxpayers should receive their refund within 21 days of when they file electronically with direct deposit (assuming no issues).

Money Brief: Feb. 1 Deadline for W-2s

If you are an employer, you must file Form W-2s and other wage statements by Monday, February 1, 2021. This is also the date Form W-2s are due to employees. Form 1099-MISC, Miscellaneous Income and Form 1099-NEC, Nonemployee Compensation, are also due to recipients on February 1, 2021. E-file is the quickest, most accurate and convenient way to file these forms. If we are filing these forms for you, please get your information to us ASAP.

Money Brief: UGA Business Webinars

Register today for one of UGA’s upcoming webinars discussing the new SBA funding programs. Discussions will include updates and changes to the new PPP, the Targeted EIDL advance, the SBA Debt Relief Program, and the Shuttered Venue Operators Grant program, among others.