January 3 - Payment of Employer Share of Social Security Tax from 2020 -
If you are an employer that deferred paying the employer share of social security tax or the railroad retirement tax equivalent in 2020, pay 50% of the deferred amount of the employer share of social security tax by January 3, 2022. The remaining 50% of the deferred amount of the employer share of social security tax is due by January 3, 2023. Any payments or deposits made before January 3, 2022, are first applied against the payment due by January 3, 2023.
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January 3 - Payment of the Deferred Employee Share of Social Security Tax from 2020 - 
If are an employer that deferred withholding and payment of the employee share of social security tax or the railroad retirement tax equivalent on certain employee wages and compensation between September 1, 2020, and December 31, 2020, you should have withheld and paid those taxes ratably from wages paid to the employee between January 1, 2021, and December 31, 2021. The employer is liable to pay the deferred taxes to the IRS and must do so before January 3, 2022.
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 January 3 - Time to Call For Your Tax Appointment -
January is the beginning of tax season. If you have not made an appointment to have your taxes prepared, we encourage you to do so before the calendar becomes too crowded.

January 10 - Report Tips to Employer -
If you are an employee who works for tips and received more than $20 in tips during December, you are required to report them to your employer on IRS Form 4070 no later than January 10.

January 18 - Individual Estimated Tax Payment Due -
It’s time to make your fourth quarter estimated tax installment payment for the 2021 tax year.

January 31 - Individuals Who Must Make Estimated Tax Payments -
If you didn't pay your last installment of estimated tax by January 18, you may choose (but aren't required) to file your income tax return (Form 1040 or Form 1040-SR) for 2021 by January 31. Filing your return and paying any tax due by January 31 prevents any penalty for late payment of the last installment. If you can't file and pay your tax by January 31, file and pay your tax by April 18 (April 19 if you live in Maine or Massachusetts).

Married taxpayers have two options when filing their 1040 or 1040-SR tax returns. The first and most frequently used filing status is married filing joint (MFJ), where the incomes and allowable expenses of both spouses are combined and reported on one tax return. The joint status almost always results in the lowest overall tax. Spouses who file together are jointly liable for the tax, meaning either or both can be held responsible for paying the tax from the joint return.
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The second option is to file as married filing separately (MFS), with each spouse filing a return. Depending on whether the taxpayers are residents of a separate or community property state, these separate returns may include just the income and eligible expenses of each filer or a percentage of their combined income and expenses. Couples may choose the MFS option for a variety of reasons:

In September of 2021, the Congressional Budget Office announced a proposal to increase funding for the Internal Revenue Service by as much as $80 billion over the next ten years. The argument is that doing so would ultimately increase the revenue the organization is able to generate by as much as $200 billion over the next decade.
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A significant portion of the new money — to the tune of about $60 billion — is aimed at empowering enforcement actions in particular. All told, that means by 2031, the IRS will double the number of people working for it and will have a 90% higher budget than they do right now.

Article Highlights:
 

• IRS Compliance Campaign
• New Reporting Requirement for Crypto Exchanges
• Form W-9
• Form 1099-B
• Cryptocurrency as Property
• Digital Assets Definition
• Transfer Reporting
• Cash Transaction Reporting
• 1040 Crypto Question

Article Highlights:

• Head of household filing status
• Earned income tax credit
• Child tax credit
• Child care credit for certain working grandparents
• Grandchild education credits
• Medical and dental expenses

 
More and more individuals who thought their child-rearing days were over are now raising their grandchildren. It is estimated that 6.5 million children in the United States currently live with at least one grandparent, accounting for approximately 9% of all children nationally and more than half of those not living with their parents.  

Article Highlights:
 

• Underpayment of Estimated Tax and Withholding Penalty
• Required Minimum Distribution Penalty
• Late-Filing Penalty
• Late-Payment Penalty
• Negligence Penalty
• Fraud Penalty
• Dishonored Check Penalty
• Missing ID Number Penalty
• Early Withdrawal Penalty
• Penalty for Failure to Report Tips
• Foreign Reporting
• Excessive Claim Penalty
• Accuracy-Related Penalty for Non-itemizers
• Frivolous Return Penalty
• Penalty for Failure to File Information Returns

During the holidays, many charities solicit gifts of money or property. This article includes tips for documenting your charitable gifts so that you can claim a deduction on your tax return.  

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Disabled individuals, as well as parents of disabled children, may qualify for a number of tax credits and other tax benefits. Listed below are several tax credits and other benefits that are available if you or someone listed on your federal tax return is disabled. ​

Article Highlights:
 

• Taking Stock of Tax Strategies
• Education Tax Credits
• Converting a Traditional IRA to a Roth IRA
• Minimum Required Distributions
• Charitable Contributions
• Qualified Charitable Distributions
• Health Savings Accounts
• Prepaying State Taxes
• Paying Medical/Dental Bills
• Gifting
• Avoiding Underpayment Penalties

 
 
It seems hard to believe, but the holiday season is almost upon us, and that means that the 2021 tax preparation season will soon follow. With the end of the tax year just around the corner, tax-savvy individuals need to take some time from their busy schedules to review the tax benefit steps they’ve already taken and see what else they need to do. Now is the time to ensure that you’ve taken advantage of all of the tax-saving strategies available to you.