TAX FILING FAQ

We offer the following options for filing your taxes:

  • In person appointment at our local office

  • Document Drop off service at our local office

  • Document Upload 

 

Unsure if changes in tax regulations will impact your filing experience this tax year? Feel free to consult our newsletter below which captures changes announced by the IRS.

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Tax Year 2021 Annual Stansbury-Poplar Services Newsletter 

COVID-19 continues to impact our lives and the way we do business. We are currently planning to open for business with individual appointments and drop-offs, on Saturday, January 29 and we will be following Baltimore County Covid protocols. For now that means wearing a mask, but requirements could change as time goes on. The health and safety of our clients and staff remain our greatest concern. We will be able to accept your documents through drop-off, mail, fax, or email using our website – www.Stansburytax.com

 

Here are some of the changes in place for filing tax year 2021:

  • Coronavirus Aid, Relief and Economic Security Act (CARES)

    • The third Economic Recovery Payment was made in January, 2021. If you did not get the payment of $1400.each or received less than expected, you may be eligible for the Recovery Rebate Credit on your 2021 return. You will need Form 1444 or the amount you received in 2021. 

    • The Required Minimum Distribution was reinstated in 2021.

    • Cash donations for those who do not itemize remain at $300. Single; $600. Married filing joint

  • American Rescue Plan

    • Advanced Child Tax Credit – The increased child tax credit (with an optional advanced payment starting July 15-December 15) was available for 2021. The advanced amount must be accounted for on your 2021 tax forms in order to calculate the remaining Child Tax Credit for 2021. The advanced amount will be reported on IRS form 6419 or on the IRS portal.

    • Expanded Child and Dependent Care Credit- Refundable credit of $4000 for one child/dependent / $8000. For more than one; increased income limits to $125,000 and partial credit for incomes of $125,000-$438,000.

    • Unemployment received in 2021 is taxable to the IRS. (Maryland unemployment is taxable for individuals with incomes over $75,000. / $100,000 married filing joint)

    • Health care deductions for those who itemize now include at home Covid tests and PPE.

  • Tax  brackets and Capital Gains

    • The income range has increased for every tax bracket – 10%, 12%, 22%, 24%, 32%, 35% and 37%. Capital Gains rates remain the same.

  • Mileage Rates Change for 2021

    • Mileage Deductions- Business (LLC, S Corp, Corp, Private Entrepreneur) rate: 56 cents per mile; Charity: 14 cents a mile; Medical: 16 cents a mile

  • Standard Deduction Increased

    • Single and Married filing separately $12550, Head of Household $18,800, Married filing jointly and surviving spouse $25,100 / additional amount for age or blindness Married, surviving spouse $1350. Single, head of household $1700.

  • Education Credits and Tuition

    • The American Opportunity Education Credit ($2500 credit for the first four years of postsecondary education) and Lifetime Learning Credit ($2000. of postsecondary education courses to improve job skills) are available in 2021. 

  • Premium Tax Credit and Health Insurance

    • If you purchased insurance through the marketplace known as Health Insurance Marketplace via HealthCare.gov, then you will receive form 1095 A indicating the amount of the Premium Tax Credit. For 2021 tax year, you must bring the form 1095A in order to file.

  • Tax on Child’s investment

    • The maximum amount of unearned, investment income such as dividends, capital gains and interest that a child can have without it being subject to tax is $1100. 

  • Increased Due Diligence Requirements for Tax Practitioners

    • In order to claim a Head of Household status, Child Tax Credit, Earned Income Credit, and/or American Opportunity Credit, taxpayers must have physical documentation of the child’s Taxpayer Identification Number (TIN) and address. 

 

 

As of this date, the IRS will begin accepting returns in late January, 2022; however, those filing taxes with an Earned Income Credit, Additional Stimulus #3 money and Child Tax Credits will be delayed until late February, 2022. Cathy, Barbara, Cindy and Anne will be preparing taxes starting January 29, 2022. Please call 410-284-1301 for an appointment. The tax deadline is April 18, 2022. For your convenience, we will have a drop off form, checklist and letter on our website at www.Stansburytax.com.  We look forward to hearing from you!

 

 

Tax Checklist

 

General Information:

_____Social Security numbers for all persons on the tax return

_____Birthdates and addresses of children and dependent adults

_____Estimated payments made to IRS and State of Maryland

_____IRS Notice 1444 Economic Impact Statement and IRS form 6419 Advanced Child Tax Credit received

 

Income:

_____W 2s, 1099 Misc. 

_____Interest - Banks, Checking and Savings Acts, CD’s Treasury Bills

_____Dividends - Mutual Funds, Stocks

_____State Refund from last year if you filed 1040 with itemized deductions

_____Alimony received from divorce decrees made pre-2018

_____Unemployment Compensation

_____Traditional IRA, Pension, Annuity, Retirement withdrawals

_____IRA Rollovers; Roth Conversion

_____Pension Income - 1099 R

_____Social Security Statements

_____Stock Disposals/Sales - 1099 B (Need original purchase date, original cost, sell date)

_____Rental Income and expenses

_____Business income and Expenses

_____Other Income: Lottery Winnings, Miscellaneous Income, 1099 C (Cancellation of Debt), 1099 K( Internet

           Sales)

_____Sale of house: Settlement papers when bought and sold

 

Adjustments and or Tax Credit Information

_____IRA Contributions – Traditional or Roth

_____Penalty on early withdrawal of savings

_____Child Care Credit: Need social security or EIN number of child care provider, address, and amount paid

_____Educational expenses relating to post-secondary education – 1098 T

_____Student Loan Interest

_____Self -employed medical insurance

_____Educator expenses

_____Elective deferrals to a 401(k) or other qualified employer plan, voluntary employee contributions and      

          501 c (18) plan

_____Residential energy efficiency improvements – solar cells, energy saving roof*, windows*, doors* (lifetime cap $500.)

_____ 1095 A, 1095 B, 1095 C – Cost and information about Health insurance premiums

_____ Health Savings Account participants– forms 5498-SA; 1099 SA

_____529 College plans for Maryland deduction

 

Itemized Deductions Still deductible:

____Medical and dental costs which include:

Doctor and dentist fees, braces, prescription medicines, insulin, acupuncture, air conditioner necessary for allergies, nursing fees, hospital fees, contacts and supplies, chiropractic services, medical, dental and long-term care insurance, hearing aids, dentures, guide dog for physically disabled, birth control prescribed by a doctor, special equipment installed in a home to provide a medical benefit, surgery to improve vision, long term care premiums, Covid PPE and at home tests

_____State income taxes paid in 2021

_____Real Estate taxes - Personal Property Taxes - Ground Rent

_____Sales tax on motor vehicles, motor home  

_____Home mortgage Interest and Private Mortgage Insurance Premiums (PMI)*                                                         

_____Points paid on a refinance and purchase of residence           

_____Investment interest                                                                

_____Charitable contribution                                                          

_____Casualty and theft losses                                                       

_____Gambling losses to the extent of Gambling Winnings                 

Working Hours

January - April 18th

Mon - Fri: 9:30am - 6:45pm

Saturday: 9:00am - 4:00 pm​​

Sunday: Closed

After April 29th

By Appointment Only

Let's Chat

Tel: 410-284-1301

Fax: 410-284-4253

front.office@stansburytax.com

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1705-A Poplar Place

Dundalk, MD 21224