Tax Time Guide - - - How to do Taxes for Free and get Refunds Fast

Tax Time Guide: How to do Taxes for Free and get Refunds Fast | site |




(Information contained in U.S. Internal Revenue Service [IRS] news release dated: February 23, 2021)

Washington - - - During this tax season when many people are trying to stay safe at home, the Internal Revenue Service reminds taxpayers about ways to do their taxes for free online or with help from volunteers.


Free File is easy, fast, safe and secure

Taxpayers who want to prepare and file their tax returns electronically can use IRS Free File. IRS Free File offers brand-name tax software for taxpayers with an income of $72,000 or less in 2020. Taxpayers who earned more can use Free File Fillable Forms, the electronic version of IRS paper forms. Taxpayers can get started at IRS.gov/freefile . IRS Free File also lets taxpayers get an automatic extension of time to file if they need it. Free File is also a way to get a refund fast. Filin...

Victims of Texas Winter Storms get Deadline Extensions and Other Tax Relief | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: February 22, 2021)

Washington - - Victims of this month's winter storms in Texas will have until June 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to the entire state of Texas. But taxpayers in other states impacted by these winter storms that receive similar FEMA disaster declarations will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on February...

New IRS Form available for Self-employed Individuals to claim COVID-19 Sick and Family Leave Tax Credits under FFCRA | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: February 8, 2021)

Washington - - The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA).

Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. They'll claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and December 31, 2020, and on their 2021 Form 1040 for leave taken between January 1, 2021, and March 31, 2021. The FFCRA, passed in March 2020, allows eligible self-employ...

U.S. Internal Revenue Service says Educators can now Deduct out-of-pocket Expenses for COVID-19 Protective Items | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: February 4, 2021)

Washington - - Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to:

• face masks;
• disinfectant for use against COVID-19;
• hand soap;
• hand sanitizer;
• disposable gloves;
• tape, paint or chalk to guide social distancing;
• physical barriers (for example, clear plexiglass);
• air purifiers; and
• other items recommended by the Centers for Disease Control and Prevention (CDC) to be used for the prevention of the spread of COVID-19.

Rev. Proc. 2021-15, issued today, provides guidance related to educators and their expenses under the COVID-related Tax Relief Act of 2020, which was enacted as part of...

U.S. Internal Revenue Service updates FAQs on Paid Sick Leave Credit and Family Leave Credit | site |


(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 29, 2021)


Washington - - The Internal Revenue Service today posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs. The updates to the FAQs cover how the COVID-related Tax Relief Act of 2020, enacted December 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits. The paid sick and family leave credits, which previously were available only unt...

U.S. Internal Revenue Service says New Law extends COVID Tax Credit for Employers who Keep Workers on Payroll | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 26, 2021)

Washington - - The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2020, made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021. Several of the changes apply only to 2021, while others apply to both 2020 and 2021. As a result of the new ...

U.S. Internal Revenue Service urges Taxpayers to gather Tax Documents now for smooth Filing later | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 22, 2021)

Washington - - The Internal Revenue Service is reminding taxpayers that organizing tax records is an important first step for getting ready to prepare and file their 2020 tax return. Taxpayers should keep all necessary records, such as W-2s, 1099s, receipts, canceled checks and other documents that support an item of income, or a deduction or credit, appearing on their tax return. Taxpayers should develop a system that keeps all their important information together, which could include a software program for electronic records or a file cabinet for paper documents in labeled folders. Having records readily at hand makes preparing a tax return easier. To avoid refund delays, taxpayers should be sure to gather all year-end inco...

2021 Tax Filing Season begins Feb. 12; IRS outlines Steps to Speed Refunds during Pandemic | site |




(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 15, 2021)

Washington - - The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus mone...

IRS Free File available Today; claim Recovery Rebate Credit and other Tax Credits | site |




(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 15, 2021)

Washington - - IRS Free File – online tax preparation products available at no charge – launched today, giving taxpayers an early opportunity to claim credits like the Recovery Rebate Credit and other deductions, the Internal Revenue Service announced. Leading tax software providers make their online products available for free as part of a 19-year partnership with the Internal Revenue Service. There are nine products in English and two in Spanish. “As we continue to confront the COVID-19 pandemic, IRS Free File and certain other similar online tax preparation products such as MilTax – Tax Services for the Military offered through the Department of Defense − offers taxpayers a free way to do their taxes from the safety of their own hom...

Businesses have Feb. 1 Deadline to provide Forms 1099-MISC and 1099-NEC to Recipients | site |



(Information contained in U.S. Internal Revenue Service [IRS] press release dated: January 14, 2021)

Washington - - The Internal Revenue Service today reminded businesses and other payors that the revised Form 1099-MISC, Miscellaneous Income, and the new Form 1099-NEC, Nonemployee Compensation, must be furnished to most recipients by February 1, 2021.

Redesigned Form 1099-MISC

The IRS revised Form 1099-MISC for the 2020 tax year to accommodate the creation of a new Form 1099-NEC. The redesigned 1099-MISC has different box numbers for reporting certain income. Businesses must send Form 1099-MISC to recipients by February 1, 2021, and file it with the IRS by March 1 (March 31 if filing electronically). If businesses are using Forms 1099-MISC to report amounts in box 8, Substitute Payments in Lieu of Dividends or Interest...