Tax Season is Here!
Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use regular mail, telephone, or email to set up individuals, businesses, payroll, and tax professionals. For more information, visit the IRS website.
Tax season is here, even if it feels like last tax season just ended. Like most years, there have been changes to the tax code this year. Here are some of the top ones you should be aware of and what you should do to be ready for them.
Thursday, April 15, 2021, is Tax Day this year. If your taxes are postmarked any later than that day, your taxes will be late, and you’ll be penalized. It is unlikely there will be a blanket extension this year. It’s been a rough year for everyone and those who’ve experienced job loss have had a particularly rough time. And that rough patch is likely to extend through tax season, as unemployment benefits are taxable.
These are increasing. The standard deduction for a married couple is now $25,100, a $300 increase. For individuals, it moves up to $12,550, a $150 increase. And if you’re head of household, the standard deduction is now $18,800, up $150. You may want to do a cost-benefit analysis of your deductions this year. A lot of people bought things to work from home. If you itemize your work-from-home purchases, you may benefit more than taking the standard deduction.
What Is Form 1098: Mortgage Interest Statement?
Form 1098 is a form filed with the Internal Revenue Service (IRS) that details the amount of interest and related expenses paid on a mortgage during the tax year. Form 1098 is used to report interest payments made by an individual or sole proprietor to the government for tax purposes. The form is issued by the lender or other entity receiving the interest to the borrower who can use the information to deduct the interest paid from his or her taxable income.
1098’s (Interest Paid on your Home Loans) will be mailed to your home address by January 31.
The interest paid and homeowners insurance (Escrow) you paid on your mortgage will be included in your monthly statement, normally the October through December statements.Go to main navigation