Chi-Town (Chicago, Illinois) The clock is ticking down to Tax Day!
You have until April 18 to file your taxes, so now is a good time to get started.
Changes to the tax code for the year 2021 have a substantial impact on taxpayers.
This year, are I required to pay taxes?
wccWGN News Now spoke with Dan Rahill, Managing Director at Wintrust Management and a CPA, on tax preparation.
Rahill urged taxpayers to be mindful of “stimulus cheques,” or Economic Impact Payments. In March of 2021, he predicted that 175 million people will receive stimulus payments based on data from the 2019 and 2020 tax returns. According to Rahill, you may be entitled money if you didn’t obtain the entire amount of the tax credit.
If you’re eligible for additional Child Tax Credits, you may not even realise it. In March, President Biden’s American Rescue Plan doubled the credit limit. Rahill urged families to take advantage of the increased tax credit on their 2021 tax return if they are eligible.
Learn more about how to deduct child tax credit money from your taxable income.
Individuals who don’t itemise their deductions can now claim a deduction of up to $300, while joint filers can claim a deduction of up to $600. In addition, these deductions must be made in cash, according to him.
Working from home during the pandemic may include paying taxes in multiple states. You may be liable for taxes in more than one state if you reside in a state other than the one in which your business is incorporated. During the epidemic, whether you worked remotely at your parents’, friends’, or a vacation house, you may be liable for taxes in more than one state, according to Mr. Johnson.
Even if you bought a sandwich with cryptocurrencies, Rahill said, you’d have to tell the IRS about it since it’s taxable. For those who hold their cryptocurrency in tax-advantaged accounts, net profits are taxed as long- or short-term capital gains, and losses can be used to offset gains.
For those who are over 72 years old, Rahill also advised them to take their minimal distributions. If you meet certain requirements, you must take an annual minimum distribution (RMD) from your retirement savings.