{"id":5793,"date":"2019-04-11T15:48:25","date_gmt":"2019-04-11T12:48:25","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=5793"},"modified":"2021-01-07T14:23:45","modified_gmt":"2021-01-07T12:23:45","slug":"tax-day-2021-tips-guide","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/tax-day-2021-tips-guide\/","title":{"rendered":"6 Important Tax Tips Before the July 2021 Tax Day Deadline"},"content":{"rendered":"\n

When is the Tax Day deadline in 2021?<\/span><\/h2>\n

The deadline for filing 2021 US federal taxes is July 15, 2021. Usually Tax Day is April 15, but the worldwide economic crisis that has followed the Coronavirus outbreak resulted in a pushing-back of the 2021 Tax Day deadline.<\/span><\/p>\n

In any case, since Tax Season started with the turn of the New Year, by now you\u2019ve hopefully taken some time to prepare the necessary documents for Tax Day 2021.<\/span><\/p>\n

According to IRS data though, the truth of the matter is that roughly <\/span>one-in-four<\/span><\/a> Americans wait until the final two weeks of tax season to file (we\u2019re only human!). Considering the fact that we\u2019re given more than four months to put everything together, that statistic raises some red flags. Fortunately, it\u2019s not too late! And even if you aren\u2019t able to beat the tax return deadline 2021 offers, there are still solutions available at your disposal.<\/span><\/p>\n

If you\u2019re still wondering, \u201chow do I prepare for Tax Day?\u201d, don\u2019t sweat it because you\u2019re not \u2018a-loan\u2019. The 2021 tax deadline is upon us folks, there\u2019s no avoiding it now. So be sure to follow these Tax Day tips, and don\u2019t wait until the last minute next time!<\/span><\/p>\n\n

6 tax tips for the July 2021 Tax Day deadline<\/span><\/h2>\n

In search of Tax Day tips? We break down the top 6 tax tips for 2021 for you just below. Make the most of these pointers in order to finish off tax season strongly.<\/span><\/p>\n

    \n
  1. Use tax software<\/span><\/li>\n
  2. File your taxes online<\/span><\/li>\n
  3. Bundle your expenses<\/span><\/li>\n
  4. Make the most of your IRA<\/span><\/li>\n
  5. Get a Tax Day extension<\/span><\/li>\n
  6. Check if you qualify for new Coronavirus tax credits<\/li>\n<\/ol>\n\n

    1. Tax software<\/span><\/h3>\n

    Tax preparation software comes as a tremendous relief to taxpayers who are uncertain about how to go about filing on their own. One of the biggest perks is that many tax software companies offer free services that will help individuals who have very simple tax requirements complete their forms properly.<\/span><\/p>\n

    The higher-tier tax services offered by those companies come at a cost but are still cheaper than hiring a professional accountant to do your taxes. Take a few minutes to learn more about <\/span>tax preparation software<\/span><\/a>.<\/span><\/p>\n\n

    \n

    If you feel that a higher-tier tax filing software can help you, but the cost is a bit out of your range, consider <\/span>business loans<\/span><\/a> as a way to cover the expenses that are over your budget.<\/span><\/p>\n

    By using advanced algorithms, <\/span>Become<\/span><\/a> helps to increase business owners\u2019 chances of obtaining funding, and also makes the business loan application process quick and easy.<\/span><\/p>\n<\/blockquote>\n\n

    2. File online<\/span><\/h3>\n

    For individuals and businesses making less than $66,000 income, the <\/span>IRS<\/span><\/a> offers services that offer guidance on how to file taxes free of cost. For those taxpayers earning more than $66,000 annually, there are still useful services offered by the IRS to simplify the tax filing process. In any case, these resources will help reduce stress as we approach the tax return deadline 2021.<\/span><\/p>\n\n

    3. Bundle expenses<\/span><\/h3>\n

    In anticipation of this fiscal year drawing to a close, one strategy you can use to save yourself some money is to spend as much as you can on tax-deductible expenses before the 2021 tax deadline. Yes, you read that correctly.<\/span><\/p>\n

    Instead of paying employees a bonus at the beginning of the year and waiting months for the tax deduction, you can bunch them together at the end of the year and benefit from the deductions you\u2019ll get <\/span>this<\/span><\/i> year. The same is true for tax deductions for inventory – buy a few months\u2019 worth of supplies before July Tax Day 2021 and save yourself a few bucks over the first months of the new fiscal year.<\/span><\/p>\n\n

    4. Make full use of your IRA<\/span><\/h3>\n

    Making a contribution to your Individual Retirement Account (IRA) is probably the most popular method of making last-minute tax deductions. Qualifications for this tax deduction will depend on several factors, including marital status, income, and whether or not your employer is providing you with a retirement plan.<\/span><\/p>\n

    The bottom line is, the maximum IRA contribution allowed is $6,000 for individuals younger than 50 years of age, and $7,000 for taxpayers 50 years or older. If you haven\u2019t been taking advantage of this deduction, you should get on the ball. You\u2019re not getting any younger!<\/span><\/p>\n\n

    5. Get a Tax Day extension<\/span><\/h3>\n

    Whether you were on vacation, preoccupied at work, or simply forgot to get prepared for Tax Day 2021, the IRS offers the option for taxpayers to request a 6-month extension. We\u2019ll cover the process of how to apply for an extension on taxes further below. Suffice it to say that, if you\u2019re in a time crunch for filing taxes, requesting an extension is something you\u2019ll want to do.<\/span><\/p>\n\n

    6. Check if you qualify for new Coronavirus tax credits<\/span><\/h3>\n

    The IRS has recently begun offering 3 new tax credits for businesses that can show they\u2019ve been negatively impacted by coronavirus shutdowns.<\/p>\n

    Employee retention credit<\/strong>\u00a0\u2013 designed to incentivize employers to retain employees. This credit is a 50% refund of up to $10,000 in payroll expenses. Most businesses and nonprofits are eligible, but not those that receive small business loans.<\/p>\n

    Paid sick leave credit\u00a0<\/strong>\u2013 designed to give a break for employers that have employees who are unable to work because of quarantine. This credit is a 100% refund on a maximum of 80 hours at $511 per day per employee (max $5,110 per employee).<\/p>\n

    Family leave credit<\/strong>\u00a0\u2013 designed to give a break for employers that have employees who are unable to work because they\u2019re caring for a family member (for example, a sick relative or a child that doesn\u2019t have childcare services available). This credit grants employers a 100% refund of up to $10,000 per employee over a period of 10 weeks (66% of the employee\u2019s regular pay, up to $200 per day).<\/p>\n

    \n

    You can visit IRS.gov<\/a>\u00a0for details on how to apply.<\/strong><\/p>\n<\/blockquote>\n\n

    \"Tax<\/p>\n\n

    Steps to Take Before Your Tax Preparation<\/span><\/h2>\n

    So you\u2019ve already postponed and procrastinated and now you\u2019re finally ready to take a whack at filing taxes. Before you jump headlong into the thick of it, make sure you get prepared for what\u2019s to come. Follow these four simple steps and avoid further delays in completing this important task.<\/span><\/p>\n

    Step-by-step guide for filing taxes for businesses:<\/b><\/p>\n

      \n
    1. Gather documents<\/span><\/li>\n
    2. Check which form is right<\/span><\/li>\n
    3. Complete the form<\/span><\/li>\n
    4. File on time<\/span><\/li>\n<\/ol>\n\n

      Let\u2019s take a deeper look at each of the four steps to filing taxes for businesses.<\/span><\/p>\n\n

      1. Gather documents<\/span><\/h3>\n

      Besides having your social security or tax ID number, you\u2019ll need to have proof of transactions that have taken place throughout the year. Hopefully you have a system that you use to keep financial records organized. One useful tool to help simplify the bookkeeping process is <\/span>Quickbooks<\/span><\/a>, which brings all of your bookkeeping needs together on one intuitive dashboard.<\/span><\/p>\n

      Necessary tax documents may include:<\/b><\/p>\n