The Internal Revenue Service encouraged taxpayers to take necessary actions in the final weeks of the year to help file federal tax returns timely and accurately in 2021.
A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to make tax filing easier in 2021.
This year, there are some key items to consider involving credits, deductions and refunds:
Recovery Rebate Credit/Economic Impact Payment:
Taxpayers who received an Economic Impact Payment, should keep Notice 1444, Your Economic Impact Payment, with their 2020 tax records. They may be eligible to claim the Recovery Rebate Credit on their tax year 2020 federal income tax return if:
they didn’t receive an Economic Impact Payment, or
their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018), plus $500 for each qualifying child they had in 2020.