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
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.
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!
_____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
_____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
_____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
_____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
_____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
_____Casualty and theft losses
_____Gambling losses to the extent of Gambling Winnings
January - April 18th
Mon - Fri: 9:30am - 6:45pm
Saturday: 9:00am - 4:00 pm
After April 29th
By Appointment Only
1705-A Poplar Place
Dundalk, MD 21224