The IRS is encouraging everyone to get ready to file taxes in 2021. Remember to keep all forms that show your income, credits, and deductions.
If you owed money last year or experienced any personal or financial changes that might affect your taxes, you should check your withholdings and make adjustments to your payments soon.
To avoid an unexpected surprise, you should use the Tax Withholding Estimator. This will help to determine if you need to make an adjustment to your withholding or estimated taxes.
There are new forms for the 2020 tax return. Form 1099-NEC will be used to report Nonemployee Compensation. Notice 1444 will reflect your Economic Impact Payment. Keep your Notice 1444 for use when preparing your taxes.
You will be able to claim the recovery rebate credit if you met the eligibility requirements in 2020 and one of the following applies to you:
You didn’t receive an Economic Impact Payment in 2020.
You are single and the payment was less than $1,200.
You were married and filed jointly for 2018 or 2019 and your payment was less than $2,400.
You didn’t receive $500 for each qualifying child.