Some IRS April 15 Debits Did Not Occur
For some taxpayers who had debits scheduled for April 15, 2021 for federal income tax balances due for the 2020 tax year, the debit did not occur on April 15. The IRS has indicated that this was caused by an issue with their software and that these debits are expected to occur within the next week, without further action required by practitioners or clients. (Nevertheless, clients should mon...
NYS Treatment of Unemployment
On April 8, 2021, New York State announced that unemployment benefits that are excluded from federal gross income must be added back to income for the purpose of the New York personal income tax.
New York has updated the instructions for Form IT-558, New York State Adjustments due to Decoupling from the IRC, to include a new code for this add-back. The adjustment code is A-011.
IRS Refunds for Unemployment Exclusion
On March 31, 2021, in IR-2021-71, the IRS announced that it will begin sending refunds to taxpayers who received unemployment benefits and are eligible for the exclusion on up to $10,200 of benefits but who filed their tax return before the recent changes made by the American Rescue Plan.
Such refunds will occur in the spring and summer, starting in May 2021.
The IRS indicated that, for taxpay...
IRA Contribution Due Date
In Notice 2021-21, the IRS announced that the due date to contribute to an IRA for the 2020 tax year is May 17, 2021, matching the filing due date.
The later due date also applies for contributions for health savings accounts.
The due date for making first quarter estimated taxes for the 2021 tax year remains April 15, 2021.