February News To Know

Interest Payments on 2020 IRS Refunds

In 2021,  millions of taxpayers received an interest payment with their tax refunds due to processing and refund delays. If you were one of them, be on the lookout for a form called 1099-INT. Any interest you earned on your IRS refund is fully taxable and will be listed on that form, so you’ll want to share it with your accountant for your 2021 filing. 

For Business Owners: 1099-NEC Filing Extension Deadline

As we mentioned in our January News to Know, business owners — including sole proprietors — must file a 1099-NEC (nonemployee compensation) to report cumulative payments for services over $600 to any individual, LLC, or attorney/law firm. The original filing deadline was January 31, but you have until February 28 to file if you filed for an extension. 

Important Tax Dates to Know

• As federal offices are closed on April 15 for Emancipation Day (a holiday in Washington, D.C.), the IRS recently announced that the deadline to file and pay income taxes this year, or file an extension, is Monday, April 18, for most states. Maine and Massachusetts residents have until April 19 to file federal returns, as April 18 is Patriot’s Day in those two states. 
• Additionally, the agency announced that the 2022 federal tax season began on Monday, January 24, for individual filers. The IRS is getting an early start to plan around two main challenges: 1) a possible resurgence of COVID-19 infections, and 2) less funding from Congress than the President’s administration requested. 

Key Tax Law Changes That Could Affect You in 2022

The IRS made several tax law changes in 2021 that may affect your filing this year. These new provisions include, but are not limited to, the following:

• Cryptocurrency 
• Advance Child Tax Credit
• Home office expenses

We’ve outlined these and other tax law changes that could impact your 2021 filing here. 

Electronic Filing & Direct Deposit

As a reminder, we recommend that you choose direct deposit with your e-filed return as a reliable, fast, and secure way to get your tax refund. Now more than ever, it’s important to have a safe, contact-free way to receive any payments 

As always, don’t hesitate to reach out with any questions or concerns you may have. We’re here to help! Please feel free to contact your CJBS team member.  

Stay safe & healthy, 

The CJBS Team