Hello, February, and Love
to our new 2021 Valentine, the Internal Revenue Service! via GIPHY
Yes, that heartfelt mention of Uncle Sam's tax collector is not a typo or joke. It's recognition that the IRS has set Feb. 12 as the official start of the 2021 tax filing season. What other reason than wanting to be our Valentine could the tax agency have for choosing the Friday leading into St. Valentine's Weekend as the time when it will begin processing our 2020 returns?
Oh, wait. Maybe to give the IRS time to update forms and computer systems due to year-end COVID-19 law changes? Maybe, but I'm sentimental even when it comes to taxes, so I'm sticking with IRS hearts and flowers. And tax tasks for this shortest month of the year!
Feb. 1: Because Jan. 31 fell on Sunday, today is the day that issuers of tax information must get the documents at least on their way to taxpayers. Keep an eye out this week for the many and varied tax statements you'll need to file your 2020 return.
Feb. 2: Happy Groundhog Day!
Waiting for your tax statements will help keep you from getting caught in a
Bill Murray kind of tax loop where you have to file an
amended tax return because you entered wrong info with your first filing.
Feb. 7: Super Bowl LV is here! Despite some coronavirus complications during the 2020 regular National Football League season, today's 55th Super Bowl will decide the professional U.S. football league's champion. It's also the biggest single betting day of the year, with much of the money going toward goofy
prop bets. Just remember, if any of them pay off, then you
owe tax on your winnings. Note, too, that even if your winnings are part of a
fantasy sports bet, the associated taxes are very real.
Feb. 10: Coronavirus vaccines are rolling out, albeit slowly, and some pandemic precautions are being lifted. That means some restaurants are opening for a limited number of diners. Other eateries are continuing with take-out meals and deliveries. Whether you're able to enjoy table service or still relying on 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 in January, you need to account for them today by using
Form 4070 to report your tips today to your employer.
Feb. 12: Black History Month is celebrated every day this month, commemorating the achievements by black Americans and recognizing the role of African Americans in U.S. history.
This day is notable, however, because
National Association for the Advancement of Colored People (NAACP), the nation's oldest and largest grassroots-based civil rights organization, was founded on Feb. 12, 1909. That was the centennial anniversary of the birth of Abraham Lincoln, who issued the
Emancipation Proclamation twice.
One of the NAACP's key divisions is its
Legal Defense and Educational Fund.
If you want to support the Fund's work, you can donate to it and, since it is a 501(c)(3) organization, you can claim it as a
charitable tax deduction. If you gave to this nonprofit or any other charity last year, you can claim a deduction. This usually happens when taxpayers itemize, but for the 2020 and 2021 tax years, you can
claim some charitable gifts directly on Form 1040. The deduction is up to $300 on 2020 returns for all filers. For 2021 taxes, the deduction remains $300 for single taxpayers, but goes to $600 for married couples who file a joint return.
Feb. 12: Today is, as mentioned at the top of this tax tasks list, is the day that the IRS will start accepting and processing our 2020 tax returns. If you filed early, your
Form 1040 has been in a holding pattern. Now it's officially in IRS hands. So today also is the day you can start your official refund watch.
Feb. 14: Happy Valentine's Day!
Do you and your better half file a joint return? Most
married couples do. Remember to look over the 1040 carefully before you sign it. When both spouses sign their jointly filed 1040, each is
jointly and severally liable for the entire tax amount due. I don't want to spoil your Heart Day celebration, but this means the IRS can come after either spouse for payment of a tax bill, even the husband or wife who is in more dire financial circumstances.
Feb. 15: Today is
Presidents Day, officially honoring George Washington, the Father of Our Country. Over the years, however, this federal (three-day, yay!) holiday has come to commemorate the contributions of all our Commanders in Chief. And we've got to give a (another) special shout out to Abraham Lincoln, who essentially was
father of our income tax system, signing into law a tax on earnings to help pay Civil War costs.
Feb. 19: You tried filing your return, but discovered that your tax situation is much more complicated than you realized. So you've decided to hire a professional tax preparer. Smart move, but don't dally. With the delayed filing season start and all the COVID-19 related tax law changes, reputable tax pros' calendars are filling up fast. Start
searching now for a tax professional who best meets your tax needs. And definitely
thoroughly check out the preparer you pick before handing over details of your tax life.
Feb. 23: Or maybe you've decided you'll do your own taxes this year. The IRS recommends you use tax software and e-file your return. That will speed up the processing of your 1040 and, if you're due a refund, get the money on its way to you sooner. The IRS also suggests you use Free File, the online no-cost tax preparation and e-filing partnership between the IRS and Free File Alliance.
The official
Free File site at IRS.gov has been accepting returns since Jan. 15. You can use one of this year's
nine participating tax software options if your adjusted gross income is $72,000 or less, regardless of filing status.
Feb. 28: Wow! We're already at the end of February? This shortest of months certainly flew by while we were having tax fun. However, if you filed your 1040 back on Feb. 12 (or earlier) because you're expecting a refund, you're probably thinking it's taking a long time for you to get your money. You can check the status of your return online using the IRS' online "
Where's My Refund?" tool.
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.