January 25, 2021
The new year 2021 has entered like a lion, and we’re just getting started! With the heinous events at the Capitol and memories of the inauguration still fresh, it can feel like taxes are the furthest thing from anyone’s mind. So, please carve out a moment for yourself in the near future to relax, take a deep breath and clear your mind. Afterwards, we can turn our attention to the tax filing season at hand.
Although the official start of the filing season will be delayed until February 12, it is still just around the corner. We’re starting things off with EITC Awareness Day on the January 29, so keep an eye out for our toolkit and read a bit more about it in our Spotlight. In addition, please join our Tweet campaign to thank your members of Congress for the additional VITA funding for this year – a full $30 million! There’s quite a bit on tap for this month, and we’re excited to kick off the new year with you.
What a Start to the Year!
Spotlight: EITC Awareness Day Toolkit Coming Soon!
January 29 is EITC Awareness Day. Our annual celebration of this valuable credit and the start of the filing season will be marked by a toolkit for easy plug-and-play messaging. The toolkit will have messages and resources for tax preparation practitioners, policymakers, researchers and taxpayers. In addition to the social media messages, the toolkit will feature state-level data sheets to share with your stakeholders and shareable images.
Tools and Information for the Field
Updates from the IRS and SPEC
Filing Season Start Delayed
The IRS announced that the filing season will start on February 12, 2021. Read more about it in the IRS press release and stay tuned for more information.
EITC Lookback
Under the COVID-related Tax Relief Act of 2020, taxpayers impacted by a job loss or change in income in can elect to use their 2019 earned income to figure the credit if their 2019 earned income is more than their 2020 earned income; the same is true for the Additional Child Tax Credit. The IRS has a new video on the EITC in 2021.
Get Ready for Taxes
The IRS has created a special page on IRS.gov, outlining steps taxpayers can take now to prepare for the 2021 tax return filing season ahead.
Virtual VITA Resources
Prosperity Now has developed new Virtual VITA resources to help your program throughout the filing season! Our Virtual VITA Toolkit can guide your program through design considerations to volunteer management in a fully virtual environment in a fully modular, plug-and-play design. In addition, our Alternative Tax Prep Options page provides a collection resources and practices to shape your program’s alternative service delivery models from FSA to drop-off.
RideShareTaxHelp is Now Live
RideSharetaxHelp.com is now updated for the 2021 tax filing season. This project of the Get It Back Campaign and CASH Campaign of Maryland provides comprehensive guidance on tax filing for Uber and Lyft drivers. Tax info for food couriers will be added soon.