As of February 12th, tax season is officially here! And we want to remind you... Menicucci Insurance is here to provide support and resources for you and your business. From tax questions to reviewing your commercial insurance needs (and everything in between), our team at Menicucci Insurance is here for you! Don't hesitate to call us at 505.883.6383.
The IRS warned this tax season will be challenging and full of delays. Below are some tips and reminders on how to be best prepared and successfully navigate through 2021 taxes.
Individual and corporate tax returns must be filed for the 2020 tax year by April 15th. You can request an extension to October 15th.
1. Be organized. It's important to know your dates and deadlines, have all the correct paper work and documents, and file on time. Take time to ensure that you have everything you need so that you are best prepared to meet your deadlines. When in doubt, request an extension! That would mean filling out Form 4868 by April 15th. How do you find the right tax forms? You can view and download a large catalog of forms and publications at the Internal Revenue Service website or have them sent to you by mail.
2. Pay on time. If you file and pay late, the IRS can slap you with a late-filing penalty of 4.5% per month of the tax owed and a late-payment penalty of 0.5% a month of the tax due. The maximum late filing penalty is 22.5% and the late-payment penalty tops out at 25%.
3. File electronically and use direct deposit. The safest and most accurate way to get a refund is to electronically file and choose direct deposit. Eight out of 10 taxpayers get their refunds by using direct deposit. It is simple, secure and fast!
4. Charitable deduction for 2020. If you made cash gifts to charities in 2020, there’s a new $300 above-the-line charitable donation deduction per tax return. That means even if you take the standard deduction and don’t itemize deductions, you can take the $300 charitable deduction. You will need proof of your gift, so for gifts under $250, credit card statements or cancelled checks will work as a receipt. For gifts of $250 or more, you need a written acknowledgment from the charity.
5. Use the IRS 'Where’s My Refund?' tool. Most refunds are sent within 21 days of e-filing. If you’re expecting a refund and want to know when you might get it, the 'Where’s My Refund?' tool on the IRS website lets you check on the status. A personalized refund date should show up 24 hours after you e-file.
For more detailed information and resources, visit https://www.irs.gov/businesses