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IF YOU LIVE IN OKLAHOMA the IRS and Oklahoma Tax Commission have changed the deadline filing date to June 15, 2021. If you live outside Oklahoma (or Texas or Louisiana) the IRS has changed its deadline date to May 17, 2021 for 1040 filers only. Check with your state to see if it followed the change.
The first $10,200 in unemployment benefits received in 2020 are non-taxable (which is not the same as non-reportable) on your 2020 federal return for those with a modified adjusted gross income under $150,000. Oklahoma has decided to follow suit. Check with your state to determine taxability.
What if you have already filed your tax return this year? Wait on further guidance from the IRS before filing an amended return.
3rd Stimulus payments:
Similar to how the 1stand 2nd stimulus payments were an advance credit payment on your 2020 tax return, this is an advance credit payment on your 2021 tax return. Most individuals will be receiving $1,400 each, to include spouse, dependents (and unlike the first two payments) college-students and adult dependents.
Income limitations: To receive the full $1,400 your adjusted gross income (AGI) from your 2020 tax return (or 2019 if 2020 is not yet filed) can’t be more than $75,000 for an individual filer or $150,000 for married filing jointly. The check phases out for singles with AGI between $75,000 and $80,000 and married filing joint between $150,000 and $160,000. No check will be received if your AGI is over these amounts.
How do I know what my AGI is? This amount can be found on your tax return.
What if you only receive social security and don’t file a tax return? The IRS will automatically send the third check to people who don’t file a tax return but receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits. If you don’t fall into one of these categories, look into filing a tax return.
What if you don’t receive a payment? It will be “reconciled” on your 2021 tax return and you can claim it then, assuming you meet the income qualifications.
Child Tax Credit:
For qualifying individuals, the 2021 the child tax credit will increase as follows: from $2,000 to $3,600 per child under 6 years old and to $3,000 per child aged 6 to 17. The IRS will begin paying out the credit in advance in monthly payments from July thru December 2021.
This is an advance credit payment for your 2021 tax return, which means if you receive the monthly payments you will not receive it on your tax return. The IRS will set up an online portal to allow taxpayers to opt out of receiving the advance monthly payments, instead receiving one lump sum on your tax return.
Please note, the material contained in this article is for informational purposes only, is general in nature, and should not be relied upon or construed as a legal opinion or legal advice. As this information is in summary format with many specific qualifying and limiting conditions that may not be listed here, the information may or may not apply to your individual situation. Most importantly, please keep in mind this information is changing rapidly and is based on our current understanding. It can and likely will change. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. We encourage you to consult with your CPA for clarification and to see if it fits your particular situation.
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