8 Ways Your Taxes Will Differ When You File in 2021The Internal Revenue Service has announced you can file your 2020 tax year return starting Friday, February 12, 2021. 

Due to the COVID-19 pandemic, the IRS urges all taxpayers to file electronically with direct deposit as soon as all required documents are in hand to speed up their refund.

What Do I Need to File

  • Your personal information that includes Social Security, date of birth and bank account for direct deposit
  • Information about your income such as W-2, Social Security benefits and Unemployment
  • Adjustments that will reduce income taxed such as tuition paid and IRA contributions
  • If you itemize your deductions you will need child care costs, mortgage interest, donations and property taxes paid

Click here to schedule your complimentary online appointment

Because of the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February.  The law gives additional time to help the IRS stop fraudulent refunds and claims from being issued.  If you claim EITC and ACTC, the IRS anticipates the first week of March is when you would see a refund if you filed your return electronically with direct deposit and there were no issues with your tax return.

Review of Important Key Filing Dates

  • February 12. Individual tax returns accepted and processing begins for 2021 tax season.
  • February 22. Projected date for the IRS.gov Where’s My Refund tool to update those claiming EITC and ACTC, also referred to as PATH Act returns.
  • First week of March. Tax refunds go out to those claiming EITC and ACTC (PATH Act returns) filed electronically with direct deposit and have no issues with their tax returns.
  • April 15. Deadline for filing 2020 tax returns.
  • October 15. Deadline to file for those requesting an extension on their 2020 tax returns

Visit our website www.preminsure.com to schedule a complimentary appointment to process your tax return online. You can contact our office at 713-926-4233 for further assistance.

 

Tables

2021 Federal Income Tax Brackets and Rates   
Rate For Unmarried Individuals For Married Individuals Filing Joint Returns For Heads of Households
10% Up to $9,950 Up to $19,900 Up to $14,200
12% $9,951 to $40,525 $19,901 to $81,050 $14,201 to $54,200
22% $40,526 to $86,375 $81,051 to $172,750 $54,201 to $86,350
24% $86,376 to $164,925 $172,751 to $329,850 $86,351 to $164,900
32% $164,926 to $209,425 $329,851 to $418,850 $164,901 to $209,400
35% $209,426 to $523,600 $418,851 to $628,300 $209,401 to $523,600
37% Over $523,600 Over $628,300 Over $523,600
Source: Internal Revenue Service
2021 Standard Deduction
Deduction Amount
$12,550
$25,100
$18,800
Source: Internal Revenue Source