Filing 2021 Taxes: A Brief Guide

by | Apr 14, 2022 | Small Business | 0 comments

Tax time is upon us. And while filing 2021 taxes may not be everyone’s favorite thing to do, it is an essential thing to do. If for whatever reason, you cannot file 2021 taxes by the April 18 deadline, you can submit a form that would effectively give you a six-month extension. This would enable you to file in October of this year.

If you owe money come tax time, you also want to be sure and submit your payment along with your returns. It makes sense, if possible, to pay what you owe on time. For whatever reason, if you do not or cannot offer payment by April 18, the IRS will attach penalties to the amount that you owe. These fines can add up over time. This then will increase your overall tax burden for 2021.

Another option for those who find it difficult to pay the amount they owe for their 2021 taxes is to set up an installment plan with the IRS. While this is not ideal, it is one way to at least show that you are making an effort to pay your tax bill.

Commonly Asked Questions About Filing 2021 Taxes

How long does it take to get a tax refund?

Usually, if the IRS owes you money, they will send you a check or direct deposit the funds into your bank account. They will usually do this within 21 days of receiving your tax return. There is a place on the IRS website where you can check the status of your tax refund.

Do I have to report a stimulus check?

The stimulus payments are not taxable. For the 2021 tax year, these are the ones that came as a third-round stimulus payment beginning in March 2021. You do, however, want to report the number of that payment as recorded in the letter you received.

Are cryptocurrencies taxable?

Given that cryptocurrency is a relatively new phenomenon, many people have questions and concerns regarding the tax status of virtual currency. It can be confusing trying to understand exactly what is involved with cryptocurrencies and tax payments. If you buy cryptocurrencies and hold onto them, they are not taxable. When you sell your cryptocurrencies or are paid in cryptocurrency, you do have to report this on your 2021 tax returns. When filing 2021 taxes, cryptocurrencies are taxed just as property is. In other words, you are taxed as you would be when it comes to capital gains tax. You may want to turn to a professional for help with this matter.

A Few More Basic Tax Questions

What are the chances I will get audited for 2021?

During any given tax year, there is always a chance that the IRS could audit you. This is why even if you have your taxes prepared by someone else, you always want to check over the returns before filing your 2021 taxes. If the IRS audits you and the government does find a mistake with your taxes, you could be subject to penalties. Not to mention, you will have to pay any unpaid taxes that remain.

I have questions regarding filing 2021 taxes, what should I do?

Since the onset of the pandemic, the IRS has had difficulty fielding questions that have come it’s way. Their website irs.gov is a good resource for those who have basic questions. You could also go to the nearest taxpayer assistance center and try and get an appointment there to have your questions answered. If preparing your taxes becomes too complex, you might invest in working with an accountant or professional tax expert. They can ultimately save you time and money.

First Union Lending Lending Wants to Help

We are here for you. We work with small businesses across the United States, getting them the cash they need precisely when they need it. Versus traditional banks who drag their feet for weeks or even months. First Union offers merchant cash advances, equipment financing, and short-term loans, among other funding types. Even if you don’t have the best credit score, we might still have a solution for you. Call today and let’s get started.