Oh, 2021. I cannot tell you how happy we are to see you. You will be better than 2020, right? Right?!? via GIPHY
And just so there's no confusion, that's a question New Year 2021, not a challenge. So don't you dare try to outdo the just-past Year of COVID-19 and its many, many complications, including in the tax world.
Jan. 1: While there's some good news with vaccines going out to fight the coronavirus pandemic, we'll still be dealing with it for a while. The Internal Revenue Service is delivering the second round of relief payments and the commissioner promises that the agency will start the 2021 filing season as usual later this month. I hope that's correct, but we shall see.
Jan. 4: If your job made it through the tough last year, good for you and your company and welcome to the New Year's first work week. It's the perfect time to refine your payroll withholding. This is particularly applicable true for federal employees, including members of the military and even IRS personnel, whose withholding was suspended that last few months of 2020. That money must be paid to Uncle Sam, but a new late-year law says the repayment isn't due until the end of 2021. Adjustment withholding now will give you 52 weeks to spread it across, making the per-paycheck bite less painful.
Jan. 7: The IRS' online withholding assistant or your tax pro can help you with your withholding amount and other tax numbers, but it's also a good idea going into a New Year to have an idea of your tax bracket and income tax rate. The rates tend to hold steady (until Congress starts fiddling!), but the brackets are adjusted annually for inflation. You can check out the 2021 income brackets (and 2020's for comparison) in the first post in the ol' blog's annual inflation series. At the end of that item, you'll find a directly to the other nine inflation items.
Jan. 11: Continuing coronavirus precautions mean some restaurants are still closed for in-house dining. Other eateries are managing with take-out meals and deliveries. Whether you're able to enjoy table service in or getting food brought to your house, remember to tip your server or delivery person.
If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.
As for servers who are still on the job, remember that your
tips are taxable income. If you at least $20 in job-related gratuities last December, you need to account for them today by using
Form 4070 to report your tips today to your employer.
Jan. 13: Did some of those tips come from a side hustle? That's just one of the
tax matters to think about when you are part of the
gig economy. In these freelance or contractor situations, you'll need to pay
estimated taxes.
Jan. 15: The final estimated tax payment for the prior year, 2020 in this case, is due today. The other three payments are for earnings in 2021 that aren't subject to withholding and are due on April 15, June 15 and Sept. 15. And be sure to account for your
self-employment tax in figuring your estimated amounts.
Jan. 18: Many people spend
Martin Luther King Jr. Day each year as a
day of service.
Click image to find out ways
you can volunteer on MLK Day. Taking time on Dr. King's holiday to volunteer at a charity isn't tax deductible, but some costs associated with
volunteering could help reduce your tax bill if you itemize. Most filers, however, claim the standard deduction and a new tax law gives them a tax break, too. On your 2020 return, you can claim up to
$300 in donations directly on your Form 1040. In 2021, the $300 amount remains, but is doubled for couples who file jointly.
Jan. 21: If the IRS meets its usual timetable, the annual tax-filing season will start soon. If you can get your tax material together, then there are several
good reasons to file your return early.
Jan. 25: Millions of filers find electronic tax options are great ways to get returns to the IRS as soon as possible. The tax agency agrees. In fact, for almost two decades, the IRS has partnered with the Free File Alliance to offer eligible taxpayers access to online tax software and e-filing through the aptly named
Free File site at IRS.gov.
Free File companies started preparing returns for eligible filers on
Jan. 15. This filing season, that's taxpayers with adjusted gross income of $72,000 or less, regardless of filing status. While the nine participating tax software companies will help you complete your 2020 return starting in mid-January, they will hold the returns for actual filing until the IRS officially starts accepting the 1040s on
Feb. 12.
Jan. 29: Of course, regardless of how you file your taxes, you can't do so until you all the necessary documents, such as
W-2 and
1099 forms. Employers have until the end of the month (or Feb. 1 this year since Jan. 31 falls on Sunday) to get the to you, so be on the lookout for all the
documents you need to file.
Small Business Tax Calendar: Important
filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS'
online calendar page and view the full year's important business and individual tax dates in
IRS Pub. 509.
Richard,
It's not only visitors to the U.S. that look upon us as money grabbers! This time of year in particular that's the consensus of American taxpayers!
Love Canada, taxes and all! It's been way too long since we've visited. Go Leafs Go!
Kay
Posted by: Kay | Wednesday, February 10, 2010 at 02:47 PM
Canada, as well, has a sales tax refund policy for out of country visitors. It is logical to reward our visitors for their tourist dollars. Most countries in Europe Austria, France, Switzerland) also do this. The U.S. continues to be looked upon as money grabbers.
Posted by: Richard Toivonen | Wednesday, February 10, 2010 at 11:13 AM
As a visitor to the US from the UK, I can tell you that I do pay attention to local taxation and it makes a difference to where we visit. In the UK, tourists can obtain a refund of sales tax (VAT) on major purchases.
Surely its better to encourage visitors and increase overall income (i.e. not just taxation) for a state or city?
Stuart
Posted by: Stuart B | Monday, October 19, 2009 at 08:48 AM
I live in Florence, SC, sixty miles from Myrtle Beach. The reporter sited a link to hotel sales tax in this story. The linked story recited a Mr. Chapman, who I believe is General Manager Steve Chapman of the Island Vista Resort in Myrtle Beach, but I'm not sure.
The other fellow is a small, local businessman who watches his income closely. The point being, a general manager doesn't pay the light bill for the resort, he only works there. If operating costs don't affect him personally, then I don't see how Mr. Chapman's opinion mattered when the story encompassed small business entrepreneurs in Myrtle Beach.
Myrtle Beach went through major rennovations over the past few years. Investors created some beautiful golf courses, and the city built a hugh airport mall to accomodate visitors. There have been several bookings made for art festivals this year, plus there are three zoos in the area, and several attractions only 30 minutes away.
If you haven't visited them, you're missing out.
Sure, the taxes are there, but if you aren't utilizing your time to visit all the attractions, all you see is a few blocks of restaurants and waterfront.
Go here to learn More:
http://www.visitmyrtlebeach.com/
Posted by: Karen Morris | Monday, July 06, 2009 at 05:47 PM