It's that time again to start the preparation of your Income Taxes. OR, as we all say get back what Uncle Sam owes Us. Filing taxes is one of the most tedious things you'll ever do. The deadline is April 15, 2021 for your 2020 filing, even as tax laws and requirements change. You can always hire a tax specialist to help you reduce your tax burden and maximize your refund. According to a recent National society of accountants it could cost $188 for the simplest Federal & State returns this year. What if . . .You could do your taxes yourself and use that $188 for a new handbag? This is not far fetched. For years I did my own taxes, my Son's taxes, My Mom and Sister's taxes right from the small desk in my bedroom at no cost. I used H&R Block and the IRS Free File online programs. Well, it was work to get their records on a timely basis and it was worth some nominal fee, but it was all for loved ones. In 2019 more than 34 million taxpayers paid for tax software to file their Taxes, even though many qualified for Free File. But, not everyone should file their own taxes. Some multiple incomes are complicated and even the seasoned tax preparer needs some assistance. Let's just say. . . you sold your business, sold your house and moved to another state - You are going to need a professional or better yet an Accountant to file your income taxes. But, if all you have is one or two streams of income and have all your records, then you should try one of the Free online tax filing programs available:
- The IRS offers Free File.
- Free file Alliance offers no cost tax prep software if your income is less than $72k.
- Credit Karma Tax: H&R Block: Turbo Tax: Taxact:
Just about everyone is waiting for the third STIMMY (stimulus check), bringing up to $1,400 per person in your household. The $1.9 trillion stimulus bill was signed into law. But, what happens if you're missing your first stimulus check or your second check, for you or your dependents? Well, now that tax season has arrived, you should file Early and file a Recovery Rebate Credit on your 2020 return for any missing Stimmys. And, you could benefit if you qualify for more money in a third stimulus check if the IRS uses your 2020 taxes instead of your 2019 taxes. It all depends on your 2020 AGI.