Now that we are in the fourth quarter of 2021, this is your last chance to make any adjustments to your tax liability and tax credits before you file your tax return.
Here are some reasons to meet with a Tax Professional to get some help:
- Change in Filing Status
- Change in Dependents
- Change in Income
- Are you having enough Federal Income Tax Withheld?
- Are you Self-Employed?
Here are a couple of items that you will need with you when you have your tax appointment:
- 3rd Stimulus check ($1,400 per person)
- Advance Child Tax Credit
- Cash Donations to Non-Profits
Let’s go a little more in detail about the above items:
Change in Filing Status: would be if you got Married, Divorced, Separated, or your spouse has died.
Change in Dependents: would be if you had a child, adopted a child, or your child turned 18 and is not in school, or your child 24 and is not in school.
Change in Income: would be an increase or decrease of income. Withdrawing money from a retirement account. You retired and no longer getting a W-2 paycheck, and now receiving a 1099-R check.
You’ll need to check your paystubs, retirement account checks and make sure you are having enough withheld. With the new W-4’s that were created in 2019, the calculations are much different than before 2019, plus with the changes to Child Tax Credit and Child/Dependent Care Credit, these withholdings can be way off.
You need to know exactly how much you received for the 3rd stimulus that started coming out in March/April of 2021 so it can be reconciled on your tax return, this money is not taxable.
Next week we will go over the Advance Child Tax Credit in more detail, as this one is a little more complicated.
Even if you do not Itemized there could be a potential that you can claim up to $600 to a non-profit organization. Sorry, but Go Fund Me is not a charitable contribution, this is considered a gift.
If you have any questions or would like us to go over your information to make sure you are on the right track, or need to make any adjustments, please schedule an appointment at https://go.thryv.com/site/pinabiz and we would be happy to help.