Special Charitable Tax Deduction
The IRS and nonprofit groups remind taxpayers that there is a special tax provision that allows more people to deduct donations to qualifying charities on their 2021 tax return. Under the temporary law, taxpayers don’t need to itemize deductions to take advantage of this pandemic-related rule; individuals can deduct up to $300 in donations and married couples filing jointly can deduct up to $600. The contributions must be made by December 31, 2021.
Disaster Tax Relief
Taxpayers in Kentucky affected by the recent storms, tornados, and floods have until May 16, 2022 to file various individual and business tax returns, and make tax payments. This is also the due date for 2021 IRA contributions, and quarterly payroll and excise tax returns. The same relief is being provided to storm victims in Illinois and Tennessee, and relief previously offered to those affected by Hurricane Ida have had their deadlines extended from January 3, 2022, to February 15. Detailed information is available on the Disaster Assistance and Emergency Relief page, and updates for specific disasters can be found here.
Deferred Social Security Tax Payments Due Soon
The IRS reminds employers and the self-employed that chose to defer paying part of their 2020 Social Security tax payment that their payment is due January 3, 2022. Most employers and individuals received a reminder billing notice, but the payment is due whether a billing notice was received or not. The deferral was part of COVID relief in 2020; half the deferred amount is due now, and the other half on January 3, 2023.
Hold Onto Advance Child Tax Credit Letters
The IRS will be issuing informational letters to recipients of the Advance Child Tax Credit starting in December, as well as letters to recipients of the third round of Economic Impact Payments in late January. These have important information that will make preparing tax returns easier and more accurate. The IRS urges taxpayers to use electronic filing to avoid delays.