There are two new forms you will need to include with your 2021 tax information when you have your 2021 return prepared.
One is Letter 6419, 2021 Total Advanced Child Tax Credit Payments. For those of you who received Advanced Child Tax Credit payments in 2021, the IRS will mail this letter in January 2022, and your preparer will need it to correctly calculate any child tax credits due on your 2021 return.
The IRS will also mail Letter 6475, Your 2021 Economic Impact Payment. If you received less EIP than your 2021 Recovery Rebate Credit, you will get the additional amount on your 2021 tax return.
Be sure to keep both of these notices and include them with your 2021 tax information to make preparation of your 2021 return go more smoothly.
If you would like a comprehensive list of what you might need for 2021 tax preparation, please refer to our New Client Organizer on our Links You Can Use page.
For the latest information on Round 2 of the Paycheck Protection Program to help small businesses affected by Covid-19, visit this SBA site often.
The US Treasury Department has announced that Social Security beneficiaries who are not typically required to file tax returns will NOT have to file a 2019 income tax return to received an Economic Impact Payment in 2020! See the official press release issued April 1, 2020!
Under the CARES Act, self-employed individuals may qualify for unemployment benefits even though they usually don't qualify; they may qualify for the Paycheck Protection Program; and they may qualify for the Economic Injury Disaster Loan.
Check these sites for additional information:
Economic Injury Disaster Loan Emergency Advance
Federal Unemployment Assistance Information
Sole proprietors/self-employed individuals should contact their financial institutions to see if they are offering loans under these programs. It is better to apply as soon as possible as funds are limited.