In addition to individual tax returns being due on Monday, May 17, 2021, calendar-year exempt organizations must also file Forms 990 or a request for extension by the same date. New for this year: Exempt organizations that file Form 990, Return of Organization Exempt from Income Tax, are required to electronically file the return for tax years beginning after July 2, 2019, which is the 2020 ...
For some taxpayers who had debits scheduled for April 15, 2021 for federal income tax balances due for the 2020 tax year, the debit did not occur on April 15. The IRS has indicated that this was caused by an issue with their software and that these debits are expected to occur within the next week, without further action required by practitioners or clients. (Nevertheless, clients should mon...
On April 8, 2021, New York State announced that unemployment benefits that are excluded from federal gross income must be added back to income for the purpose of the New York personal income tax. New York has updated the instructions for Form IT-558, New York State Adjustments due to Decoupling from the IRC, to include a new code for this add-back. The adjustment code is A-011. The revised...
On March 31, 2021, in IR-2021-71, the IRS announced that it will begin sending refunds to taxpayers who received unemployment benefits and are eligible for the exclusion on up to $10,200 of benefits but who filed their tax return before the recent changes made by the American Rescue Plan. Such refunds will occur in the spring and summer, starting in May 2021. The IRS indicated that, for taxpay...
In Notice 2021-21, the IRS announced that the due date to contribute to an IRA for the 2020 tax year is May 17, 2021, matching the filing due date. The later due date also applies for contributions for health savings accounts. The due date for making first quarter estimated taxes for the 2021 tax year remains April 15, 2021. ...
As discussed in earlier posts, the American Rescue Plan, which was enacted on March 11, 2021 provides a retroactive exclusion for unemployment benefits received during 2020 (up to $10,200 per taxpayer). This exclusion is available for taxpayers with adjusted gross income of under $150,000. In its original guidance, the IRS indicated that, when computing income for the purpose of this thresho...
As discussed in earlier posts, the American Rescue Plan, which was enacted on March 11, 2021 provides a retroactive exclusion for unemployment benefits received during 2020 (up to $10,200 per taxpayer). For younger taxpayers who are subject to the kiddie tax, unemployment benefits in excess of the $10,200 exclusion received by the child are treated as unearned income for the purpose of the kiddi...
The New York State Budget Director Robert F. Mujica, Jr. announced on March 19, 2021 that New York will be extending the New York State income tax due date to May 17, 2021 to align with the federal due date.
The Commissioner of the IRS announced on March 18, 2021 that the IRS is planning to automatically refund overpayments for taxpayers who received unemployment compensation and who filed their 2020 income tax returns before the enactment of the law that provides a retroactive exclusion of up to $10,200 of unemployment compensation for the 2020 tax year. Under this approach, affected taxpayers will...
The Commissioner of the IRS announced on March 18, 2021 that the extension of the due date for 2020 individual income tax returns and related payments from April 15, 2021 to May 17, 2021 does not apply for the 2020 income tax returns of estates, trusts and corporations, so the due date for those returns remains April 15, 2021. He also reiterated that estimated tax payments for the first quarte...
