Tag Archives: finances

IRS and Tax Updates January 31

2021 Recovery Rebate Credit FAQ

The IRS has issued frequently asked questions (FAQs) for the 2021 Recovery Rebate Credit. This credit may apply to those who didn’t receive the full amount of their third Economic Impact Payment. To claim the credit, which can reduce taxes owed or provide a refund, eligible people must file a 2021 tax return. The FAQ covers eligibility, claiming the credit, calculating the credit, and finding the relevant information in order to claim the credit.

January 31 Wage Statement Deadline

The IRS is reminding employers to be aware of the January 31 deadline to file Forms W-2 and other wage statements. Filing accurate forms by this date helps the IRS more easily detect refund fraud and helps employers avoid penalties. Applications for extension may also be submitted to provide more time to file with the IRS. A separate extension application may extend the due date for furnishing wage statements to employees. 

Some Filing Reminders

The IRS reminds taxpayers to keep a few things in mind when filing federal income tax returns this year. Their checklist encourages individuals to:

  • Use e-file and direct deposit, even if using a trusted tax professional
  • Collect all documents, including letters regarding the Advance Child Tax Credit and third Economic Impact Payment
  • Use online tools and resources to save time over calling the IRS

2022 Tax Season Begins

The IRS has kicked off the 2022 tax filing season admonishing taxpayers to take extra precautions when filing. Electronic filing, with direct deposit, is the fastest way to avoid any refund delay. Tax software, a trusted tax professional, or Free File for those who qualify, is recommended. Recipients of the advance Child Tax Credit payments or Economic Impact Payments should ensure those amounts are entered correctly as inaccuracies in this area will result in extensive delays. Most taxpayers have a filing due date of April 18, thanks to the Washington, DC Emancipation Day holiday observance. Those in Massachusetts and Maine have until April 19 due to Patriots Day, and as always, some disaster victims have later filing deadlines

3 Tips to Manage Your Budget this Fall

School is here! Halloween, Thanksgiving and Christmas are just around the corner! If you are like many of us, August is a time that you find your budget a little tight. As you go into the coming months, here are a few simple tips to keep your budget healthy.

Envelopes Really Help

Dave Ramsey is well known for talking about envelopes and for many people this is a simple way to set aside essential funds. When you have cash in an envelope marked food, you are both less likely to use it on something else and it won’t be spent on automatic bills or other electronic funds. This is really easy to do if you work in a tipped industry but anyone can take out food budget at the beginning of a pay period. This means that you won’t be pulling out your debit card and overspending your accounts when you go shopping and it will also give you a physical feel for how much money you have left in your food budget.

This works well for things that you pay in person like food, gas, household needs, and some other budget items.

Plan Ahead

Some stores put Christmas decorations on the shelves right now and mark them off before the season really starts. You can save money by shopping now rather than in the rush of December. Likewise, plan out a sinking fund for other events like Halloween and Thanksgiving. Do you like decorations? Do you want to go all out and get the full sized candy bars for your neighborhood kids? Plan ahead and start putting small amounts of your budget aside each pay period for your desired activities.

Don’t Panic

As we go through the last half of 2021, there are many things that might give you cause to panic. Stop, breathe, and take stock of the reality around you. If the budget is tight, can you do something to increase income? Can you do something to reduce bills?

A budget is only as useful as we make it, so take time today to write out your bills, your income, your expenses, and plan out how you are going to spend over the next few months.