Page 22 - BusinessWest February 7, 2022

Get Ready to File 2021 Taxes
There Are Few Changes, but Some Could Impact Your Return
By Dan Eger and Shannon Shainwald
It’s that time again already: time to file your taxes and close out 2021.
Over the past two years, we have all witnessed
rapid changes to how we do business and live our lives. Tax season has been no different and has seen many changes to tax law and deadlines. Unlike the past two years, the 2022 tax season is currently set to complete with the normal deadlines, so be sure to get your taxes in order before the filing deadlines: April 18 for federal returns and April 19 for Massa- chusetts returns.
What’s New on Your 2021 Tax Return?
New changes to tax law for 2021 individual filing are not as hefty as in prior years, but there are still some changes that may make a difference on your return.
Watch out for letters from the IRS. Letter 6419 will reflect the child tax credit advance payments if you receive any in 2021. The child tax credit is also higher and includes 17-year-old children in 2021, so be sure you know which of your dependents qualify and for how much. Letter 6475 will reflect the third stimulus payment if you qualified to receive one. Letter 4869C will share your identity-protection PIN for your 2021 return if you have opted into the program or have dealt with fraudulent returns in the past.
The charitable deduction is once again
DAN EGER
SHANNON SHAINWALD
in place now, so you know what required informa- tion you need to have at hand and what you expect to pay for completion of all needed forms. If you will be using a new tax preparer for 2021, they will ask for a copy of your prior-year return in addition to all rel- evant documents for your 2021 tax filing.
The IRS also offers a Free File program if your income is below $72,000. Go to irs.gov or see the IRS- 2Go app to see your options. You may also qualify for local tax assistance through programs like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).
Use Your Resources
The Interactive Tax Assistant (ITA) is an IRS online tool (irs.gov) to help you get answers to several tax- law items. ITA can help you determine what income is taxable, which deductions are allowed, filing sta- tus, who can be claimed as a dependent, and avail- able tax credits. You can also visit www.mbkcpa. com/2021-tax-filing to find more resources for assis- tance with your 2021 tax filing, including blogs on the latest changes and links to useful IRS and state resources.
Taxes
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available for up to $300 to those taking the standard deduction and was expanded to allow up to $600 for those who are married filing jointly in 2021.
For itemized returns, the annual charitable deduction limit for monetary donations is equal to 100% of your adjusted gross income for 2021, which means you can remove all taxable income with your donations.
Cryptocurrency has risen in popularity over the past year. Be aware of the tax implications on your cryptocurrency investments. Speak with a trusted tax preparer to make sure your investments are account- ed for properly on your return.
Preparing Your Return
Will you be preparing your return yourself, or will you hire someone to file on your behalf? Have a plan
Announcing Our Newest Shareholder
We’re proud to announce that Attorney Mark J. Esposito has been named the newest Shareholder in our firm. Mark is a brilliant lawyer, expert litigator and valued member of our trusted legal team, and we’re thrilled to elevate him to the role of Shareholder.
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