Tax Season 2022 - What You Need to Know
It’s always wise to get a jump start during tax season! The earlier you prepare and get organized, the less you’ll have to stress about when you file.
This year, there are important changes to the tax policy that you’ll want to be aware of when it’s time to file your return. Below, you’ll find a brief overview of the most significant updates and changes to the tax policy, as well as some information on COVID-19 relief and how it may affect your taxes. I’ve also shared a few tips on how to de-stress when it comes to filing your taxes.
Here are some important changes to the standard deductions from 2020-2021:
|Married - Filing Jointly||$24,800||$25,100|
|Married - Filing Separately||$12,400||$12,500|
|Head of Household||$18,650||$18,800|
The deadlines have also changed this year! The filing deadline to submit 2021 tax returns or an extension to file and pay tax owed is Monday, April 18, 2022, for most taxpayers. ** Important to Note** For Massachusetts & Maine residents, this deadline is extended to Tuesday, April 19th, due to the observance of Patriot's Day.
If you have received an extension from the IRS, then Monday, October 17th is the last day for you to file a tax return.
While the first $10,200 of unemployment benefits were made tax-free in 2020, this does not apply in 2021. So plan to pay taxes if you were unemployed in 2021 and did not have taxes withheld from your unemployment payments1
Paycheck Protection Program (PPP) Loans
In an effort to help small business owners stay afloat, the government offered them Paycheck Protection Program (PPP) loans.These loans will be fully forgiven as long as they were used for payroll costs, interest on mortgages, rent and/or utilities. 2
Good news: If you received a stimulus check, it does not count as taxable income.3
Need a great tax professional? Call us for a trusted referral who will take excellent care of you and your financial situation!