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.

2022 Calendar: Know Your Tax Dates & Deadlines

2022 Calendar: Know Your Tax Dates & Deadlines

We will be developing a new Tax Checklist to help you pull together your tax preparation materials for 2021. We hope to have that ready in our next newsletter. Until then, please take note of these important tax-related dates for the new year:

Tuesday, January 18:

  • Pay estimated taxes for 4th quarter 2021.

Monday, January 31:

  • File Form W-2s and other wage statements if you are an employer.
  • Provide Form W-2s to employees, and Form 1099-MISC, Miscellaneous Income and Form 1099-NEC, Nonemployee Compensation to the appropriate recipients. (Note: If we are filing these forms for you, please get your information to us ASAP.)

Friday, April 1:

  • First RMD due if you turned age 72 in 2021

Monday, April 18*:

  • File your 2021 federal tax return and pay any tax due, or request a 6-month extension.
  • Pay estimated taxes for 1st quarter of 2022.
  • Contribute to your IRA for 2021.
  • Contribute to your HSA for 2021.
  • Contribute to your 401(k) or SEP for 2021 if self-employed.

Wednesday, June 15:

  • Pay estimated taxes for 2nd quarter 2022.

Thursday, September 15:

  • Pay estimated taxes for 3rd quarter 2022.

Monday, October 17:

  • File your 2021 federal tax return if you requested an extension.

 *April 15th is Emancipation Day, a legal holiday in Washington, DC.

 

Important Letters Coming Your Way

If you received advance payments of the Child Tax Credit last year, keep an eye out for Letter 6419 from the IRS. The letter includes the total amount of Advance Child Tax Credit payments you received, if any, in 2021. Note that if you chose NOT to receive advance payments, you can claim the full child tax credit when you file your 2021 tax return. 

If you didn’t qualify for the third Economic Impact Payment (EIP or “stimulus check”), or you didn’t receive the full amount, you may be eligible for the Recovery Rebate Credit when you file your 2021 tax return. The IRS will soon send you Letter 6475, which contains the total amount of the third stimulus payment you received.

We will need a copy of these letters to prepare your 2021 tax return.

Tax Appointments

We’re taking tax appointments now if you’re a new client or have major changes to your taxes. Plan ahead and call 706-632-7850 to reserve your spot. Note that you do NOT need an appointment for us to handle your tax preparation — you can just drop off your files when you’re ready.

2022 Mileage Rates

The IRS updated mileage rates for 2022 based on rising fuel prices and other costs:

  • 58.5 cents per mile for business use (up 2.5 cents per mile).
  • 18 cents per mile for either medical or moving purposes for qualified active-duty members of the Armed Forces (up 2 cents per mile).
  • 14 cents per mile in service of charitable organizations (no change from 2021).

Note that if you choose to use the standard mileage rate, you must opt to use it in the first year the vehicle is available for business use. Then, in later years, you can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period if the standard mileage rate is chosen.

Corporate Registration Due by April 1

If you own a business in Georgia, you must renew your corporate registration each year between January 1 and April 1. To do so, simply visit the registration page. Beware of misleading notices you may receive that offer to file your corporate registration for a higher cost than doing so yourself. It’s a quick process you can handle easily online.

American Rescue Plan Targets Help to Restaurants

American Rescue Plan Targets Help to Restaurants

Tax Return Deadline Extended to May 17

The IRS has extended the federal income tax filing due date for individuals from April 15 to May 17. To accommodate the new deadline, we will accept returns until Thursday, April 15th. If we receive your paperwork AFTER April 15, we will file an extension for you. To help you prepare your files, please download a copy of our 2020 Personal Tax Preparation Checklist.

Note that the deadline for estimated tax payments has NOT changed. First quarter payments are still due on April 15.

The $1.9 trillion coronavirus relief bill signed by President Biden on March 11, 2021, allocates help to struggling small businesses — especially restaurants — through grants, additional aid, and an expansion of existing credits such as the Employee Retention Tax Credit.

New Restaurant Revitalization Fund Provides Grants

The new law creates a $28.6 billion Restaurant Revitalization Fund (RRF) grant program. Hard-hit restaurants and bars can apply for grants up to $10 million based on lost gross revenue between 2019 and 2020. The vast majority of restaurants and bars will be able to apply for these grants, including those considered: “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.” Those not eligible for the grants include state- or local-government-owned entities, or owners with more than 20 restaurants, though most franchise operators will be eligible.

The Small Business Administration (SBA) will administer and disperse the RRF grants, but the program does not yet have a launch date. In the meantime, if you are a restaurant owner, you should register for the program using the System of Award Management (SAM) here. Also, work with us to prepare relevant paperwork that shows your gross revenue loss in 2020 as compared to 2019.

Employee Retention Tax Credit Extended

In the December 2020 coronavirus relief bill, Congress expanded the Employee Retention Tax Credit (ERTC) to help struggling small businesses for the first two quarters of 2021. The American Rescue Act further helps those same businesses by extending the ERTC for the third and fourth quarters of 2021. The ERTC provides up to $7,000 per employee per quarter for four quarters to help you keep your employees on the payroll.

PPP Deadline Extended to May 31

The Paycheck Protection Program application deadline was just extended, thanks to the passage of the PPP Extension Act. The application deadline is now May 31, 2021, extending the filing deadline for PPP applications by 60 days. It also provides an additional 30 days for the SBA to finish processing applications received by May 31.

If you have any questions about the new coronavirus relief law or other tax questions, please don’t hesitate to contact us. We’re here to help!

Key Due Dates

April 1: Fannin County business property tax report

April 1: Georgia Secretary of State business registration

April 15: Deadline to get your tax return files to us to avoid an extension

April 15: First quarter estimated tax payment

April 30: First quarter payroll tax report

May 17: Individual tax return

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Where’s My Refund?

If you are expecting a refund and haven’t received it yet, you can use the IRS’s “Where’s My Refund?” tool to check the status. Just go to the IRS website or click here to begin. You can start checking your refund status within 24 hours after the IRS receives your e-filed return.

Tax Season Is Almost Here!

Tax Season Is Almost Here!

Get Ready for Tax Season!

Are you ready for tax time? There are a couple of steps you can take now to alleviate some of the stress of filing your return. Plan to get organized early. Begin by putting together a tax folder with W-2s from your employer, 1099s for other income you may have earned, bank and other financial statements and receipts for things like medical bills and charitable donations.

A meeting is not required; if you have not had any changes, you are welcome to drop your documents off at the firm and we will prepare your return. If you have questions, a tax preparer can contact you to discuss them.

Organizers can be prepared after January 6. If you would like one, please email Sandy or call the office at 706-632-7850.

 

Make an Appointment Today!

We are now taking appointments for the 2017 tax season. We ask, as a courtesy to other clients, that you only schedule an appointment to see Jackie during tax season if you have had significant changes during 2016 or you are a new client for the 2016 tax year.

Call us today to set up your appointment at 706-632-7850 or email Sandy to request a time.