2021 National Cyber Security Awareness Tips
As the 2022 filing season approaches, the IRS, states, and tax industry are warning taxpayers and tax preparers to remain vigilant due to the constantly evolving threats and scams from fraudsters.
Tax Law Changes 2021
The 2021 Consolidated Appropriations legislation that was passed last December and the American Rescue Plan included the following changes to federal tax provisions and extended expiring provisions so that they are still applicable for 2021.
Child Tax Credit and Advance Child Tax Credit Payments
This page gives an overview of the advance child tax credit payments, details on the child tax credit changes, how the reconciliation process will work, what the IRS Child Tax Credit Update Portal is and what an individual can use it for, and some frequently asked questions on the child tax credit.
Child and Dependent Care Tax Credit
For taxpayers who had qualifying expenses for their children or other qualifying person, the American Rescue Plan Act of 2021 (ARPA) increases the likelihood that these taxpayers will be able to qualify for the Child and Dependent Care Tax Credit (CDCTC) and receive a larger credit for 2021.
2021 IRS Tax Identity Theft Campaign and Tax Preparers
Continuing what the IRS, tax industry, and State tax agencies started back in 2015, the Security Summit partners have created a 2021 campaign to urge tax preparers to take basic actions to help stop theft of their own personal data and their clients’ tax data from their offices.
Taxpayer Authorizations and Tax Pro Online Account
The IRS has recently added a new feature to Individual Online accounts that allows individual taxpayers to authorize their tax preparer to represent them before the IRS by allowing them to electronically sign the Power of Attorney (POA) that was initiated by their tax preparer.
Advance Child Tax Credit Payments Facts and IRS Update Tool
Facts about Advance Child Tax Credit
Advance Child Tax Credit Payment Update
The American Rescue Plan Act that was enacted in March increased the Child Tax Credit, made it fully refundable, and allowed one-half of the credit to be advanced to eligible taxpayers in monthly payments which will begin on July 15, 2021.
Reminder: Filing Deadline for Individual Returns is May 17
This is a reminder that the federal filing deadline for 2020 individual tax returns is Monday, May 17, 2021.
Unemployment Compensation Exclusion and Excess Advance Premium Tax Credit – What Will Occur for Tax Returns Filed Earlier in the Filing Season and Reporting on 2020 Returns Still to be Filed
The IRS has stated that they will adjust federal returns that were filed before the American Rescue Plan Act of 2021 was enacted on March 11 that included unemployment benefits or reported an excess Premium Tax Credit repayment on Form 1040, Schedule 2, line 2.