You've Paid your 2021 Taxes, Now What?

Now that we've made it to the finish line of filing our 2020 tax return, what happens now? 

First of all, dear readers, we want to thank you for another successful tax season. It's been two tax seasons in a row now that have brought on some of the most unique, difficult, trying, and last-minute changes. You've stood with us, been patient with us, and you've let us care for and prepare your tax returns during these uncertain times. We would be nothing without our customers, patrons, and supports, and we appreciate each of you. While some of you might have applied for a final tax extension due in October, we've made it through tax day 2021, May 17th! This is a well-deserved celebration for all of us, and we hope this year was as painless and as stress-free as it possibly could be and we hope you have a very promising refund heading your way without a huge tax bill to pay. Now that we've made it over and through tax day 2021, what now? When should you be looking for your tax return, how do you maximize your 2021 tax return, what is some good advice to remember, and what should you do to get a jump start on next year's tax season? That is what we are going to be talking about today, so let's get right down to it! 

Tracking Your 2020 Tax Return 
Now that everything has been sent off to the IRS, you will be anxiously waiting for that refund check you worked so hard to file for. While many taxpayers have already received their tax returns, based on the fact that they filed much earlier than the May 17th deadline, many taxpayers are still anxiously waiting for theirs. Here are a few things to remember and a few different ways to track your refund! 

• Remember there are a few elements as to why you are still waiting for your tax return. One is that you just filed, and the closer you file to the actual tax day, the longer it will take to get your refund back. It also might be talking a little longer because you filed by mail and not electronically as the IRS suggests. Also, the IRS may be doing some extra calculations of your return, for your benefit, because you might be eligible for a Recovery Rebate Credit. 
• You have the option to use two tracker tools set up by the IRS. By using both of these tools you can see if your return was successfully received, if the IRS is currently processing your return, and when your return is due to be mailed out by check or directly deposited into your bank account. The first step in success is to have had your return in by May 17th! Otherwise, it might take even longer to receive your return and you might even get hit with a few penalties. 
• The same tools to track your tax return can also track your stimulus payments. Note that you might receive extra money if you qualify for a tax break if you received unemployment last year. 
• It is also very important to understand that last year, due to the pandemic, the IRS was only running at half capacity which put a huge strain on processing everything on time and that strain is still there. The pandemic is still causing some delays. Right now, the IRS is predicting 21 days to get a refund returned to you. However, it could be longer due to how you filed and if you are eligible for a recovery rebate credit. 
• To begin tracking your check, make sure it's been at least 24 hours since you submitted it. Make sure to have your SSN or taxpayer-identification number handy, your filing status, and the amount your whole refund is going to be in one hand. You will use the "wheres my refund" tool on the IRS website by entering in all of this information. Once you've hit enter, you should be taken to a page that shows your status. The IRS also has an app called IRS2GO that you can download onto your smartphone. On this app, the IRS will update the information every 24 hours, so if you can't find your electronic submission that night, just try again the next night! 
• Your return could also be delayed if there are errors found on your return if it has been affected by identity fraud, if it needs review, or if it includes an 8379 Form, which could take up to 14 weeks to process. 
• If you aren't finding any information, you can try and call the IRS directly, but be forward. Their live phone tie is extremely limited and you could be on this call for a long time.

Tips To Remember
While we did just meet tax day 2021, it's never too early to prepare for the future, to continue learning about your taxes, and to help those who applied for the October extension. 

• Was this not a successful or pleasant tax season for you, regardless of the pressures put on you due to covid? Maybe it's time to ask for help and work with tax professionals, like us, next year! 
• Did you file by mail this year? File and pay on time electronically instead. 
• Begin paying quarterly estimated taxes to help in the long run. 
• Learn from your taxes this year, organize your records, receipts, and write-offs better than you did this year. Start now instead of waiting until the last minute. 
• Think about adjusting your withholdings. 
• If you can boost your 401(K) contributions. 
• Get started now and start a tax fund savings account. Open it now and continue using it for the rest of your life. 
• Invest your tax refund in an IRA. 
• Know ahead of time what forms you'll need to file properly. 
• Keep all of your previous tax returns and tax information in the same place.
• Track all of your charitable donations.  

Maximizing Your Tax Return 
While most Americans have already filed, this is still vital information to remember for the future!

• Don't forget to think about the future. By contributing to your retirement plan, you will receive multiple benefits for doing so. 
• Make sure to do your research to find out if you are eligible for refundable tax credits and to claim them if you are. 
• If you are eligible, take above-the-line deductions. 
• Don't forget to claim the beneficiary, friend, or relative that you've been taking care of and caring for. 
• If you can itemize your deductions instead of taking the standard deduction, that can save you a big chunk of change if done properly. 
• Make sure to take advantage of all the benefits available to you by the pandemic and the coronavirus relief measures. 
• Is your filing status the best option for you right now? If you have other options, you should take them! 
• Take advantage of all tax deductions that you're eligible for. 
• If you can, make your mortgage payment for January by Decemember 31st. Get it in earlier to get the added interest for your mortgage interest deduction. 
• Use the refund you get back this year to pay off any current debt to make sure your life is a little easier for when the next tax season comes around! 
• Turn around and instead of spending your tax return, invest it! 

While there is still reason to celebrate that we made it to and through tax day 2021, it is always time to keep thinking ahead and beyond. There is always a tax season to come and there is always more to learn to make the next better than the last. We will always be here to support you in your finances and all upcoming tax seasons, so don't hesitate to reach out! Please remember that we are your leading experts and tax preparers in the Goose Creek area to help with tax prep, throughout tax prep season, the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

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