Tax season quickly approaching
RAPID CITY, S.D. (KOTA) - The beginning of the calendar year means resolutions, and tax season looms not too far in the future.
Like last year, tax season this year looks a little different than normal.
This Friday, the Internal Revenue Service will start accepting tax returns electronically, which is a bit later compared to normal.
Traci Fitting, a manager in the tax department at Ketel Thorstenson LLP, said the IRS needed a little extra time this year because of the stimulus checks.
Both rounds of the stimulus payments apply to your 2020 tax return.
“And so, it’s all part of the credit that’s being calculated,” said Fitting. “You calculate the whole credit based on your 2020 income, number of dependents claimed, etc. So, subtract both payments that you received, and if there’s some left over, it’s a credit on your tax return. It goes right in with your federal withholding. If you got more than you were supposed to, based on this year’s information, it’s a gift from the government, in essence. And then, if you got just what you were supposed to get, life is good.”
Fitting recommends getting all of your tax documents prepared as soon as possible because if you have any questions or need to contact the IRS, it will likely take even longer than normal, because they are still backed up from the period in which they were closed.
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