Tax Season 2021 – Tips and Tricks for the Uninitiated

The good news is that the IRS has extended “Tax Day” until May 17, 2021. The bad news is that COVID is still around, and you have not started your taxes yet. This article will briefly discuss three tips that may save you money in the long run.
If you are just the world’s least organized person, and six weeks just isn’t enough to get everything together, the IRS has a system in place that will allow you to extend you’re filing date to October 15, 2021; though you will be expected to either pay your estimated taxes by May 17, 2021 or pay interest on what you actually owe later. Alternatively, the IRS has payment plans available for people who are still in a bind from the pandemic. Ultimately, it is imperative that you get something on file ASAP.
Next, don’t try and save a few dollars by doing your own taxes without any help; the average cost of a tax preparer is $225, the IRS allows you to use a free tax preparation program if you made less than $69k last year, and there are numerous websites that offer their services for a reasonable price. The point being that there are a lot of resources out there that will do the job, and it will always be money well spent.
Finally, don’t forget to record two potential tax breaks. Form 1098 (“Mortgage Interest Statement) covers (1) mortgage Interest, and (2) property taxes. Single people are able to deduct 100% of their interest payments on up to a $500k loan, and married couples could do the same on loans up to $1M, if you purchased your home before December 15, 2017, or $750k if you purchased a home after December 15, 2017. Moreover, you can deduct up to $10k in property taxes.
You’ve been given a stay of execution, but 6 weeks isn’t that long; using the advice above, you should be well positioned to get your taxes out of the way and get back to enjoying 2021.
At the Chernov Team we understand that knowledge is power and knowledge of how to navigate tax season with ease is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.