Coronavirus (COVID-19) and Taxes: January-December 2021

Apparently, 2021 also is the year of COVID-19. Dang it!

After dominating our lives for most of 2020, the deadly coronavirus pandemic has shown no signs of letting up, especially since too many people decided to give it a boost by leaving their self-isolation pods and visiting family and friends over the December holidays.

And that's led to this, the ol' blog's third Coronavirus (COVID-19) and Taxes page as we enter the new year. If you want to check out previous COVID-related tax posts, you can head on over to the original page with the March-July 2020 designation or the second one with posts from August-December 2020.

I suspect there might be a fourth page later this year if we can't get ourselves (yes, I am looking at all you fools who don't wear masks and insist on congregating in close quarters) and the virus under control. But let's keep our fingers crossed that we don't need any 2022 versions!

UPDATE, Jan. 1, 2022: This is one time I am not pleased with my prognostication powers. There is indeed a fourth COVID and taxes page, since the coronavirus just will not freakin' let go! Posts in which taxes and the pandemic are connected in 2022 will be found there, Coronavirus (COVID-19) and Taxes: January-... 2022.

Although there are (for now) three COVID and taxes pages, a couple of things stay the same on all.

First, the items are listed with the most recent post first.

Secondly, this page, like its COVID counterparts, starts off with posts from Don't Mess With Taxes because, well, it's my blog! Then the other sections with coronavirus links from official government websites, professional associations, law and accounting firms, and tax policy think tanks follow.

OK, enough with the housekeeping. Let's get to this third collection of coronavirus tax+ matters.

California wildfire filings, COVID-deferred payroll taxes due Jan. 3, 2022 (Dec. 30, 2021)
You got your last 2021 Advance Child Tax Credit payment. Now what? (Dec. 15, 2021)
Don't miss out on $300 ($600 for couples) charitable donation tax deduction, no itemizing needed (Dec. 13, 2021)
Nov. 29 is final chance to make advance Child Tax Credit changes (Nov. 27, 2021)
430,000 more taxpayers get unemployment-related tax refunds (Nov. 7, 2021)
Dallas man already jailed for tax fraud, pleads guilty to new PPP criminal charges (Oct. 22, 2021)
Proposed $600 bank account reporting rule won't change current cash app tracking (Oct. 10, 2021)
States forgo federal help to replenish unemployment funds. Why? (Sept. 30, 2021)
Expanded child tax credits help families and U.S. economy, say studies (Sept. 24, 2021)
IRS still behind in processing returns and issuing refunds (Sept. 23, 2021)
4 enhanced tax-deductible donation options this year (Sept. 17, 2021)
COVID-19 home tests are now tax deductible (Sept. 14, 2021)
A Labor Day salute to COVID-created new entrepreneurs (Sept. 6, 2021)
GOP tax committee members seek COVID unemployment fraud investigation (Sept. 2, 2021)
COVID email from FTC chief Khan is a scam (Aug. 20, 2021)
COVID pandemic provides new paths for con artists to steal tax (and other) money, identities (Aug. 17, 2021)
Pondering potential AdvCTC payback problems (Aug. 14, 2021)
Paid leave business tax credit expanded to encourage more COVID-19 vaccinations (Aug. 9, 2021)
States came through COVID-stricken 2020 mostly OK financially (Aug. 5, 2021)
IRS delivers another 1.5 million unemployment-related tax refunds (July 30, 2021)
Advance Child Tax Credit opt-out deadline for August payment is Monday, 8/2 (July 29, 2021)
IRS reports progress in tax return backlog (July 25, 2021)
IRS holding more in-person Advance Child Tax Credit assistance events July 23-24 (July 21, 2021)
4 million unemployment-adjusted tax refunds headed to early filers (July 13, 2021)
Advance Child Tax Credit moves (& more!) to make in July (July 05, 2021)
COVID-19 tax-related scams top IRS' Dirty Dozen 2021 list (June 28, 2021)
Reps seek $10,200 tax exclusion for essential workers (June 27, 2021)
IRS hosting tax return filing events to help families get Advance Child Tax Credit payments (June 24, 2021)
Taxpayers now can go online to opt out of Advance Child Tax Credit payments, verify eligibility (June 22, 2021)
Some Advance Child Tax Credit payments might have to be repaid (June 21, 2021)
IRS unveils online tool to help nonfilers get advance child tax credit payments (June 15, 2021)
2.8 million in unemployment tax refunds have been issued (June 6, 2021)
5 tax tasks to take care of by May 17 (May 10, 2021; reviewed and updated May 15, 2021)
More COVID payments — and written confirmation notices — are on the way (April 30, 2021)
IRS updates 2021 EITC amounts changed by COVID relief law (April 26, 2021)
29 million tax returns awaiting manual IRS processing (April 25, 2021)
COVID relief bill, IRS decision ease some pandemic-affected health care costs (April 19, 2021)
Free File can help those who don't usually file taxes get COVID payments and more (April 14, 2021)
Labor Department joins IRS in offering online resources for unemployment fraud victims (April 5, 2021)
Unemployment tax adjustments by IRS in the works, with first refunds to go out in May (April 2, 2021)
Social Security recipients should get COVID-19 relief checks by April 7 (March 31, 2021)
Hawai'i looks to be lone holdout in making May 17 Tax Day (March 28, 2021)
Congress extends PPP, but state tax news isn't so good for the COVID-relief loans (March 27, 2021)
IRS & Virginia provide tax breaks for PPE purchases (March 26, 2021)
Texas man pleads guilty to $24.8 million PPP fraud; IRS touts more COVID investigation successes (March 25, 2021)
IRS says more COVID relief payments on the way, mostly by mail this time (March 22, 2021)
IRS to automatically issue refunds on tax-free unemployment to eligible early filers (March 21, 2021)
IRS acts on Taxpayer Advocate request to discontinue offsets of some COVID relief payments (March 20, 2021)
Answers to some questions raised by the IRS move of Tax Day 2021 to May 17 (March 18, 2021)
90 million COVID relief checks delivered. How to find your EIP's status (March 17, 2021)
IRS tax-free unemployment guidance: don't amend returns if you've already filed; use new worksheet if you haven't (March 16, 2021)
IRS elaborates on delivery of $1,400 COVID relief payments (March 13, 2021)
Tax-free unemployment change could require amended tax return filings (March 10, 2021)
Senate OKs 3rd COVID payment, final House vote next week (March 6, 2021)
PPP and other pandemic tax moves to make in March 2021 (March 1, 2021)
VITA and TCE volunteers work around COVID-19 to help taxpayers file returns (Feb. 25, 2021)
W&M members ask IRS to extend April Tax Day deadline (Feb. 19, 2021)
IRS issues guidance on added flexibility for COVID-affected flexible spending accounts (Feb. 18, 2021)
8 reasons to wait to file your 2020 taxes. Yes, a COVID relief payment is #1 (Feb. 17, 2021)
Biden's proposed Child Tax Credit increase in COVID relief plan gets support … and questions (Feb. 13, 2021)
COVID PPE counts toward teachers' expenses tax deduction (Feb. 5, 2021)
Can't remember how much COVID payment you already got? Find it at your online IRS taxpayer account (Feb. 3, 2021)
Taxpayer Advocate seeks equal debt treatment for all COVID relief payments (Jan. 30, 2021)
EITC claiming option: use 2019 or 2020 income (Jan. 29, 2021)
7 reasons to file your tax return early. Yes, claiming a COVID-19 relief payment is #1 (Jan. 25, 2021)
6 small business tax breaks in current COVID relief law (Jan. 23, 2021)
Is the IRS ready to deliver more COVID relief payments? Its commissioner is optimistic (Jan. 22, 2021)
Don't overlook student loan tax break on amounts paid before COVID relief (Jan. 21, 2021)
A look at what, aside from $1,400 per person, is in Biden's COVID relief plan (Jan. 16, 2021)
IRS says it did a pretty good job in a COVID-affected year (Jan. 9, 2021)
IRS adds info to COVID debit card envelopes to distinguish them from junk mail (Jan. 8, 2021)
Undeliverable COVID-19 payments offer another scam route (Jan. 6, 2021)
Got COVID relief money questions? The IRS has updated its online answers (Jan. 5, 2021)
If you don't get your COVID money by Jan. 15, you'll have to claim it on your 2020 tax return (Jan. 4, 2021)

There also are some posts since the beginning of the pandemic that tangentially reference COVID-19's effects on taxes, but not enough so to make the official coronavirus cut for inclusion on this page.

If you're interested in seeing those, you can browse the new Coronavirus COVID-19 category. The posts above (as well as those on the other coronavirus pages) will show up, too, but just keep scrolling to find others that didn't make this coronavirus tax specific list.

Now to other off-blog resources.

First, there are the official government sites. The image above recommends Coronavirus.gov, which basically is a landing page (like this), so below are my suggestions.

Internal Revenue Service (IRS): Coronavirus Tax Relief and Economic Impact Payments

Treasury: How the Treasury Department is Taking Action

Centers for Disease Control and Prevention (CDC): Coronavirus (COVID-19)

Social Security Administration (SSA): Social Security & Coronavirus Disease (COVID-19)

Federal Trade Commission (FTC): Coronavirus - What the FTC is Doing

Health and Human Services (HHS): COVID-19 Portal

Consumer Financial Protection Bureau (CFPB): A guide to COVID-19 economic stimulus relief

Department of Education (Ed): COVID-19 ("Coronavirus") Information and Resources for Schools and School Personnel

Food and Drug Administration (FDA): Coronavirus Disease 2019 (COVID-19) Frequently Asked Questions

Federal Emergency Management Agency (FEMA): Coronavirus (COVID-19) Response (note the rumor control section)

U.S. Postal Inspection Service (USPIS): Coronavirus/COVID-19 Related Scams

USA.gov: Government Response to Coronavirus, COVID-19

And, of course, there are other sites following the pandemic's tax effects.

Many of my fellow tax bloggers are doing great jobs tracking the intricacies of COVID-19 tax changes. So are the members of the great #TaxTwitter community.

But in order to keep this page from following the excessive pieces of coronavirus legislation when it comes to length, I've focused below on web pages posted by professional firms, associations and other taxcentric entities that are providing valuable coronavirus-related tax information and advice.

National Association of Tax Professionals (NATP): COVID-19 Tax News & FAQ

American Institute of CPAs (AICPA): Coronavirus (COVID-19) tax resources (n.b., the state tax roundup)

Thomson Reuters: COVID-19 resource center

Wolters Kluwer: Coronavirus (COVID-19) Resources for Tax & Accounting Professionals

KPMG: Coronavirus (COVID-19) tax developments

Deloitte: COVID-19 tax policy updates

EY US: Responding to COVID-19

Grant Thornton: COVID-19 Resource Center

RubinBrown: Coronavirus Preparedness Resource Center

EideBailly: The New Coronavirus (COVID-19) Organiational & Individual Impacts

Institute on Taxation and Economic Policy (ITEP): COVID-19 Tax Policy Resources

The Tax Foundation: Tax Policy And The Coronavirus (note the state-by-state legislative and global country-by-country fiscal measures trackers)

Avalara: COVID-19 Tax Relief Roundup

Employee Benefit News (EBN): Coronavirus Impact

But wait, there are more: Naturally, things will change as the virus itself and our tax reactions to it evolve, so I'm asking for your help.

I know I've missed some good sites. Please let me know. I'll probably see your suggestions sooner if you let me know via Twitter where, in case you don't know, I'm @taxtweet. You also can drop me an email note.

I'll update this page as regularly as I can. You'd think that I'd have more time by essentially being on house arrest during Austin's coronavirus stay-home order, but it seems that the hours in the days also are affected by these bizarre circumstances (and my discovery of new things to stream).

Thanks for your assistance and patience. And, of course, be safe!

Taxes are important, but they are just taxes. The well-being of everyone and your families is everything, the only thing.

Original post began April 4, 2020

Today's Tax Tip

Later estimated tax deadline delayed for disaster-area filers — Sept. 16 is the deadline for most estimated tax payers to make 2024's third payment, but not all. Those who live in a location where tax relief has been granted because of a major disaster get more time. That’s the case 19 states and 2 U.S. territories. Some now have a Nov. 1 due date. Others have until Feb. 3, 2025, to meet their estimated and other tax obligations. (Sept. 13, 2024)
The 2024 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
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Tick ... Tick ... Tick

Tax Season 2024 continues!

We made it. Tax Day 2024 is finally over. For most of us. An estimated 19 million taxpayers got an extension to file their 2023 tax year return. That's fine.
In fact, the Internal Revenue Service appreciates some of us spreading out our filings. It gives the agency time to process the surge of returns
that came in on April 15.

But enough about Uncle Sam's tax collector and its issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your still adding up 2024 tax bill.

Finally, keep an eye on the countdown clock below. It will help you track yet more days tick, tick, ticking off toward that absolutely final fall filing due date.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

🍁 Hello 🍁 September 🍁
🍂 Fall 🍂 is 🍂 here! 🍂

OK, fall’s not here yet, at least not here in Texas according to still quite-warm temperatures. But forecasters say cooler weather — like highs in the 80s; yes, everything, especially weather, is relative — is on its way, and that meteorological promise gives up hope.

via GIPHY

As we get ready for the promised bit of chill, September also is a great month to make some cool tax moves, like those listed below. So, grab a sweater (or not yet), and let's go!
Sept. 1: Today is Meteorological Fall, the three months from Sept. 1 through Nov. 30 when days get shorter and cooler, but not cold. It's also the start of the annual National Preparedness Month. This year’s theme is “Start a Conversation,” since it's important to talk with your loved ones about potential emergencies. It's also critical to be prepared, as the Atlantic and Gulf of Mexico hurricane season usually peaks in September.

We’ve already had three tropical systems do enough damage to prompt Federal Emergency Management Agency (FEMA) major disaster declarations. The 2024 tropical storm season’s second named storm, Hurricane Beryl, landed as “just” a category 1 on the Texas coast, but still took 38 souls and left Lone Star State residents facing an estimated $30 billion in damages.

Hurricane Debby made two U.S. landfalls, in the Big Bend area of Florida and then again in South Carolina before moving up the Eastern Seaboard, producing disaster declarations all the way up to Vermont. Tropical Storm Ernesto, followed, slamming the U.S. territories of Puerto Rico and the U.S. Virgin Islands, as well as spawning deadly rip tides along East Coast beaches as the storm moved toward Bermuda.

And, coinciding with Meteorological Fall, we’ve still got three months of the 2024 hurricane season to go!

That has coastal residents on edge, since Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center say we could get 17 to 25 total named storms, which are those with winds of 39 mph or higher. Of those, eight to 13 are forecast to become hurricanes, meaning winds of 74 mph or higher. Four to seven becoming major hurricanes; that’s category 3, 4 or 5, with winds of 111 mph or higher.

Regardless of the count, it only takes one to wreck your world. If you haven’t already, get ready for not just tropical systems, but whatever dangerous weather that’s common where you live. The countdown clock above can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms. You also might want to check out the ol' blog's special Storm Warnings collection of special pages with posts offer tax advice on preparing for, recovering from, and helping those who sustain damages from the many ways that that weather goes wild.

Sept. 2: Happy Labor Day! This annual celebration of workers' contributions is a federal holiday and day off for many.

When you get back to work after this three day holiday, take a few minutes to check the federal tax amount that’s coming out of your paychecks. If you need to adjust your withholding so that you have the most accurate amount of taxes withheld, now is the time to do that. Submitting a new W-4 early this month will mean any changes are spread over the last four months of the year, making any impact less noticeable.

Sept. 3: If you live in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland, or Union counties in Ohio, today is your Tax Day. The Internal Revenue Service granted individual and businesses in those counties tax relief since they were declared major disaster areas following a tornado outbreak in March.

Sept. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

And if you got at least $20 in gratuities in August for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Sept. 16: Today is the deadline to pay your third installment of estimated taxes. This tax is due on income that’s not subject to withholding, such as investment earnings or contract work. Most estimated tax filers make the payments four times a year. The September payment is for such earnings received in June, July, and August. It’s usually on the 15th, but since that was Sunday, the deadline is pushed to the next business day — today!

Sept. 23: Sept. 22: The Autumnal Equinox arrives today at 8:44 a.m. Eastern Daylight Time in the Northern Hemisphere, marking the first day of Fall for all us who don't follow the meteorological fall calendar. Adjust for your time zone, since the equinox occurs at the same moment worldwide. It's also a go-to day to think about home maintenance that will help you weather the coming colder weather. The Inflation Relief Act includes extension of older and addition of new energy-related tax breaks, including some for residential energy improvements.

Sept. 30: Wow! Where did September go? That’s a good question to ask if you got an extension to file your 2023 tax return earlier this year. The last day of this ninth month means that your absolutely final Oct. 15 due day is another month closer. So you might want to get to work on that Form 1040 now. The easiest way to do do is to use tax software and electronically file.

If your adjusted gross income is $79,000 or less, you should check into Free File, the no-cost online tax preparation and electronic filing program offered by the IRS and its Free File Alliance partners. It’s open through the Oct. 15 extension deadline. This year, eight tax software companies offer programs to qualifying taxpayers.

Note that the Free File $79,000 or less income threshold applies to all filing statuses. If your income is too high, you still can file for free by using Free File's Free Forms option.

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.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2024 page.

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I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer.

The content on Don't Mess With Taxes is my personal interpretation and opinion based on my study and understanding of tax laws, policies, and regulations. It is provided for your private, noncommercial, educational, and informational purposes only. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
CDC Vaccines
CDC Booster Shots
HHS Combat COVID
USA.Gov COVID Info

September 2024

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Photo by Kay Bell
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Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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