Bennett CPA LLC is a top-rated tax preparation company in Colorado Springs where we take pride in providing straightforward and simple solutions for our clients. We understand that everyone is going through difficult times, and we aim to take the burden of tax preparation off your shoulders. Whether you have a question about your business taxes or are unsure if you qualify for certain tax breaks, our team is here to answer all of your questions.
Filing your taxes this year may seem more confusing than ever, because of the ambiguity surrounding the filing deadlines. On March 17th, Tax Day for 2021 was officially extended from April 15th to May 17th. This is an automatic action, and citizens do not have to file any paperwork in order to receive the extension. In an effort to help you stay on schedule, the team at Bennett CPA LLC has included some important tax filing deadlines.
April 15th, 2021
Corporation Income Tax - C Corps, still April 15th, extended due date of October 15th
S-Corporation Income Tax - March 15th, extended due date of September 15th
Partnerships Income Tax - March 15th, extended due date of September 15th
Fiduciary & Estate Income Tax - March 15th, extended due date of September 15th
May 17th, 2021
Individual Income Tax
When Are Business Taxes Due?
Quarterly estimated tax payments were due on April 15th. If you were unable to file your business income tax or fiduciary and estate tax by the due date, you may file under extension. As with individual income tax, the extension only extends the time to file, not the time to pay. This means that you have until October 15th to file, but your payment was due on April 15th. You can find many forms that you will need for a variety of business taxes here.
Is there a penalty for filing taxes late?
If you are unable to file your individual income tax by May 17th, the state normally has an automatic 6-month extension, but will only be 5 months for 2020 filing in 2021. However, this extension only applies to filing and not to any state income tax you may owe. If you owe taxes and fail to file a tax return or a tax extension, then you will incur penalties and owe the IRS interest. If you file your tax return after the deadline and don’t receive an extension from the government, then you will be penalized each month in the amount of 5% of your total balance due. If you are unable to pay taxes or penalties that you have incurred, you can apply for a payment agreement with the IRS.
What Documents Do I Need To File Taxes?
Understanding exactly what document you need to file your taxes correctly can be confusing. It helps to stay organized throughout the year and keep all documents that you may need to file taxes in one place. That way, when the time comes, you will not have to worry about forgetting or misplacing a relevant document. Every person’s situation is different, but most people will need the following:
Social Security numbers and dates of birth for you, your spouse, and dependents
A copy of last year’s tax return for you and your spouse
If you want your refund to be direct deposited into your bank account, then you will need your bank account number and routing number
W-2 forms for you and your spouse
1099-C forms for cancellation of debt
1099-G forms for unemployment income, state tax refund, or local tax refund
If you or your spouse worked as an independent contractor, then you will need 1099-MISC forms
1099-R, Form 8606 for retirement plan payments
1099-S forms for income from the sale of a property
1099-INT, -DIV, -B or K-1 for investment or interest income
If you received social security benefits, you will need the SSA-1099 form
Business or farming income
Rental property income and expenses
Prior year installment sale information - Forms 6252, principle and interest collected during the year, SSN and the address for payer
Miscellaneous income such as jury duty, gambling winnings, and scholarships
Adjustments To Your Income
Form 1098-E for student loan interest paid
Form 1098-T for any tuition paid after high school
If you are a teacher, include receipts for classroom supplies expenses
Records of IRA contributions made during the year
Receipts for any qualifying energy-efficient home improvements, such as solar panels
Records of MSA contributions
If you are self-employed, include receipts for health insurance payments
Records of any moving expenses
SEP, SIMPLE, and any other self-employed pension plans
Deductions And Credits
If you incur child care expenses, include the provider’s name, address, Tax ID, and amount paid
Adoption costs; you’ll need your child’s SSN, records of legal costs, records of medical costs, and records of transportation costs
Investment interest expenses
Medical and dental expense records
If you experienced a theft loss, including the amount of damage and any insurance reimbursements
Charitable donation records
Records of miscellaneous tax deductions, such as union dues and unreimbursed employee expenses
Home business expenses
Rental property expenses
Taxes You Have Paid
State and local income taxes
Real estate taxes
Personal property taxes
Vehicle license fees
If you are self-employed, include estimated tax payments made during the year
Foreign bank account information including the peak value of the account during the year
Last-Minute Tax Questions | Bennett CPA LLC Is Here To Help
At Bennett CPA LLC, one of our priorities is to educate our clients and help them better understand everything that Colorado taxes encompass. Whether you’re filing individual returns or are in need of business tax services, let us help you maximize your tax profile. From planning for retirement to making strategic tax planning decisions, we’re here for you! Contact us today to start taking control of your financial future.