What You Need to Know about the 2021 Tax Season
  • April 12, 2021
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Given that the world has taken a massive hit from the coronavirus, a lot has changed for the 2021 tax season. As always, it remains important to keep abreast with any changes to the tax code or filing guidelines so as not to fall aowl of the IRS. The tax day this year is Tuesday June 15, 2021, and it is recommended that you file your 2020 tax return by then. An IRS tax attorney can help you with all your filing requirements including things such as IRS installment agreement. Let’s have a look at everything you need to know about the 2021 taxe season.

Income Brackets and Rates for 2021 Tax Season

The percentage of your income that you pay in taxes depends on the tax bracket in which your income falls. For example, if your annual income is $75,000, you fall in the 22% tax bracket. But this does not imply that you have to pay a flat 22% tax on your annual income. A part of your income will be taxed at 10%, another part will be taxed at 12%, and the last part will be at 22%. For the year 2020, the tax rates are kept the same but there have been some adjustments in the tax brackets by a few hundred dollars.

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Deductions and Credits to Consider

At the time of paying taxes, you have the option of selecting the standard deduction or itemizing your deductions. For the tax year 2020, the standard deductions was increased to adjust for inflation. When deciding whether you should take the standard deduction or consider itemizing, you need to remember that it all boils down to your situation and every situation is different. An IRS attorney can help you with your decision.

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Apart from the standard deduction, there are other deductions and credits that can help you lower your tax burden. The deductions you claim may include charitable deductions, medical deductions, and business deductions. Tax credits, on the other hand, are meant to lower your actual tax amount. There are two types of credits: refundable and non-refundable. If the credit exceeds the amount you owe as tax, then it is a refundable credit and the difference is paid to you as a refund. The tax credits you may take advantage of also include earned income tax credit and child tax credit.

Wrap Up

The economy has taken a hit from the pandemic and a lot of people may not be able to pay their tax dues on time. If you fall in that category, it is recommended that you immediately contact our team of IRS tax attorneys at the Law Offices of Nick Nemeth. Our attorneys can help you find the most ideal solution to your tax issues, including exploring avenues such as applying for an offer in compromise and other IRS installment agreements. To speak to one of our expert IRS tax attorneys, call the Law Offices of Nick Nemeth at (972) 426-2553 or fill out our contact form.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
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I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
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Eddie WaltEddie Walt
19:44 12 Jul 22
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