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Denver Tax Preparation Tips for 2021

December 10, 2020

It’s probably a safe bet that many individuals will be happy to see the calendar turn from 2020 to the new year. These past nine months have been unlike any other for a majority of Americans as daily routines, social gatherings, and multiple other facets of life have been significantly altered by the ongoing coronavirus pandemic.

One of the many things Covid-19 altered in 2020 was taxes. Beginning the year much like any other, some individuals started gathering their information in January and those who typically file early made appointments, came into the office, sat down with their accountant, and proceeded to fill out and file a return. However, midway through tax season multiple states had enacted closures, curfews, and eventually the filing and payment deadline were extended back into July - with tax extension filings remaining somewhat on schedule. As the calendar soon flips and you prepare to file taxes in 2021, individuals should consider each of the following tips and changes to get ready.

Filing Date

Tax Day is currently set for Thursday, April 15 in 2021 - the usual filing deadline for extension grants and personal submissions. A return to the normal three-plus months of a first wave for tax season means most people should gather their information and expect to file returns in a timely manner.

Standard Deduction

The Standard Deduction for 2021 has been slightly adjusted in order to account for inflation. For individual filers, the deduction rose $200, while those who are married and file a joint return will enjoy a $400 increase. 

Tax Rate

The 2021 tax rates remain in place although bracket figures have been slightly changed to account for that same annual inflation. Thirty-seven percent remains the highest bracket, which begins at 10% and has incremental increases forming seven separate brackets.

Stimulus Check

The first, and currently only, round of stimulus checks distributed by the federal government in an effort to combat the effects of the pandemic should not count against your taxes. These $1,200 additions were not viewed as income or a pre-payment on any type of refund you may be due once the 2020 return is complete. 

Once you’re ready to file or need assistance determining how the pandemic and 2020 may have had an impact on your tax return, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for all of your filing questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing quality tax and payroll services, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!