It’s that time of the year? Definitely tax time. The first question I have for you is have all the tax returns that were filed for 2020 been processed?
- No, there are an estimated 4 million tax returns that need to be processed for 2020. The IRS also closed the e-filing capabilities around the end of October. There will probably be a small push of more 2020 tax returns as soon as the IRS opens the capability to e-file back up.
What’s the hold up on that?
- A few things caused this hold up. One of them was the many changes in 2020 due to the covid pandemic and all the stimulus payments. The IRS had to shut down for a period of time due to covid so they were behind there. Then they had to audit every tax return to make sure that the amount you said you got for the stimulus is the amount they think that they sent you. On top of those things, Biden made the IRS increase the audit for dependents. So, many Americans that have been filing their taxes with dependents had their 2020 taxes held up and they ended up having to prove that the dependents were in fact theirs.
What is the date that taxes can be sent in?
- This year the starting date is January 24th.
Do you think tax season will be extended again?
- No. The IRS has not extended the deadline beyond April. Currently the tax deadline for 2022 is April 18th, which is a little bit later than the normal April 15th. The IRS even confirmed in a press release on January 10th. They also confirmed that this years deadline to request an extension for individuals is on April 18th but the extension itself will go to October 17th. Now that’s only for personal. If you have a business, it’s different it’s a month before.
What information do you need to bring in if you are wanting your taxes done?
- You can go to my website jenniferyoungsbookkeeping.com and fill out the client intake form that can either be submitted on our website and have it sent directly to us or you can print one off and fill it out and bring it in with you. You will need all your W-2’s, 1099’s, 1098’s, k1’s or any tax documents that you have received. Now remember that these documents are not required to be out and sent to you through the mail until the end of January so don’t rush. I would rather wait and get your taxes done correctly with all the right documents than have to amend it. More money for you and more time consuming and it takes longer. If you have a business, you will need a P&L so a profit & loss and also a balance sheet. If you don’t have that you can bring all of your bank statements, credit card statements and receipts and we will take care of all that for you.
The last couple of years have been kinda crazy of course with covid. How important is it now to have a professional tax preparer do your taxes?
- The laws change daily, especially right now. It is more important now to have somebody help you because it is so confusing with all the stimulus payments and all the new credits and all the new stuff that’s happening. It’s just easier to have somebody who has been keeping up with it all year long and has the continuing education that’s needed to get your taxes done by a professional.
The best way to get a hold of you Jennifer is?
- You can call us at 605-787-3230 or you can stop in at 2200 S Plaza Dr. #1, Rapid City, SD 57702