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Time is running out to file your 2021 taxes don’t be late!

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Taxes are due April 18th!  Skip waiting in the office or in line. Contact us today to work virtually with our office to have a tax pro do your taxes. How does it work?  Use any device such as smartphone, laptop, or desktop to work with our office. Take a pic of your documents and send them to our office using a secure link with double encryption. A tax pro will review and get your taxes done and sent back to you to approve.  Get live updates from us whenever, wherever, any time you like.

 

know upfront pricing before we start.  Contact PG Tax Services today!

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2021 Tax Season in Texas Must Know Information

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Here are some of the changes for 2021 Tax Year

American Rescue Plan (ARP) of 2021. The following ARP provisions affect tax year 2021.

  • Child and dependent care credit increased.
  • Self only earned income credit EIC expanded.
  • Child tax credit expanded / advance payments of the child tax credit.

Due date of return. File Form 1040 or 1040-SR by April 18, 2022.  Due to the Emancipation Day holiday.

 

Economic impact payment—EIP 3. Any economic impact payment you received is not taxable for federal income tax purposes but will reduce your recovery rebate credit.

 

 

2021 Recovery rebate credit. This credit is figured like last year’s economic impact payment, EIP 3, except eligibility and the amount of the credit are based on your tax year 2021 information. (Call us for more details.)

 

 

Standard deduction amount increased. The standard deduction amount has been increased for all filers. The amounts are:

 

Single or Married filing separately $12,550.

 

Married filing jointly or Qualifying widow(er) $25,100.

 

Head of household $18,800.

 

 

Virtual currency. If, in 2021, you engaged in a transaction involving virtual currency, you will need to answer “Yes” to the question on page 1 of Form 1040 or 1040-SR.  This question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency.

 

Changes to the earned income credit (EIC).

 

  1. EIC rules for taxpayers without a qualifying child.
  2. EIC rules for taxpayers with a qualifying child.
  3. Phaseout amounts increased.
  4. Rules for separated spouses.
  5. Investment income limit increased.

 

 

Contact PG Tax Services today for more information.

patrick@pgtaxservices.com

512-768-0581

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Update Child Tax Credit Payments Direct Deposit Info

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How to Update Child Tax Credit Payments Direct Deposit Information

The Internal Revenue Service today upgraded a key online tool to enable families to quickly and easily update their bank account information so they can receive their monthly Child Tax Credit payment.

The bank account update feature was added to the Child Tax Credit Update Portal, available only on IRS.gov. Any updates made by August 2 will apply to the August 13 payment and all subsequent monthly payments for the rest of 2021.

Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS. Those who are not enrolled for direct deposit will receive a check. The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner.

The IRS also urges people to be on the lookout for scams related to the Child Tax Credit. People who need to update their bank account information should go directly to the IRS.gov site and not click on links received by email, text or phone.

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2021 Advance Child Tax Credit Payment Information

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Earlier this month, the IRS began sending letters to more than 36 million families who may qualify for monthly Child Tax Credit advance payments. The IRS determines eligibility based on information provided on the 2020 federal tax return (or information from the 2019 tax return if a 2020 tax return has not been filed when the payments begin). Payments are scheduled to be begin on July 15, 2021. Subsequent payments are scheduled for August 13, September 15, October 15, November 15 and December 15.

The advance CTC payments will equal half of the total estimated CTC that the taxpayer will claim on their 2021 tax return. The payment amount is determined for each qualifying child as $300 per month for children under age 6 and $250 per month for children ages 6 to 17. Because the payments are advance payments of the taxpayer’s CTC for 2021, the amounts received will be reported on the 2021 federal tax return and will reduce the remainder of CTC the taxpayer will receive when they file their return.

Several tools will be available on IRS.gov for taxpayers to determine their eligibility, track the status of payments, and to opt-out of the advance payments. The IRS has already launched a Tool for Non-Filers to sign up to receive advance CTC payments if eligible, and a Child Tax Credit Update Portal to help taxpayers manage Child Tax Credit payments. An Eligibility Assistant has also been added to the IRS website to help taxpayers determine whether or not they are eligible for the advance payments.