Tax Season 2022

Tax Season 2022 is upon us!
Note the following filing deadlines:
The deadline for most people to file their 2021 income tax returns is Monday, April 18, 2022. This is three days later than the traditional deadline of April 15. It's also worth noting that for those receiving a tax refund, the process is sped up by filing returns electronically and, where possible, having funds deposited directly into bank accounts, prepaid debit cards, or mobile apps.

file tax return
In 2021, the federal government will respond to the economic downturn once more with some relief measures that will reduce the tax burden for taxpayers who have incurred childcare costs, received post-secondary education loans, and/or paid out-of-pocket medical expenses.
However, unemployment benefits that were part of the 2020 American Rescue Plan do not extend to include tax breaks on any unemployment benefits that were received in 2021.

Child and dependent care benefits

For 2021 returns, the American Rescue Plan Act once again allows taxpayers to directly reduce their taxes by the amount spent on expenses related to child or dependent care: daycare, babysitters, or related transportation. To take advantage of this credit, families must submit all their receipts and other monetary proof when filing their tax returns.
“The unemployment benefits that were part of the 2020 American Rescue Plan do not extend to include tax breaks on any benefits received in 2021.”

Student loan forgiveness

Student loans are not considered taxable income because all of the money that is received must be paid back at some point. Therefore, unless the loan amount exceeds the amount that is needed for covered school expenses, student loans are not taxed by the IRS.

Out-of-pocket medical costs

There is also a tax break for certain unreimbursed or out-of-pocket medical costs that are not covered by health insurance. The current percentage for 2021 taxes is 7.5 percent of the adjusted gross income (AGI).
As an example, if a taxpayer’s adjusted gross income is $100,000, then the only medical expenses they could deduct on Schedule A are those expenses over $7,500.

Get Your Tax and Accounting Questions Answered by Our CPA Firm in El Paso, TX

If you’re looking for a reputable CPA firm in El Paso, TX consider calling us at Marcus, Fairall, Bristol + Co., PLLC! We’ll answer any and all of your accounting-related questions such as IRS issues. We offer our clients a variety of accounting services such as the following:

Marcus, Fairall, Bristol + Co., PLLC
Full-Service CPA Firm
230 Thunderbird Dr Ste G
El Paso, TX 79912
Phone: (915) 775-1040
Email: info@marcfair.com

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