What's new for 2021 Federal Tax Returns (Part I)

The IRS made several new changes for the 2022 Tax Filing Season. Here are a few to consider when preparing to file your 2021 Tax Return.

Filing Due Date

In 2022, most taxpayers must file their Federal tax returns by April 18th, instead of April 15th, because of the Emancipation Day holiday. Residents of Maine and Massachusetts have an extra day because of Patriots' Day holiday in those states.

Virtual Currency question on Form 1040

Make sure to check a "Yes" or "No" box to indicate if you were engaged in any virtual currency transactions in 2021. This includes receipt, sale, exchange or any other disposition of interest in any virtual currencies. You are not required to check "Yes" if the only transactions were purchases of virtual currency for real currency.

Charitable Deductions

The IRS is again allowing a charitable contribution deduction for taxpayers who take the standard deduction, but the allowed amount increased to $600 for married couples filing a joint return. In addition, the suspension of the AGI percentage limit for taxpayers that itemize their deductions was extended for the 2021 tax year.

Direct Deposit

This year, you can get a direct deposit of your refund even if you file the 2021 return late (after November 30, 2022). This is a faster transaction than waiting for a paper check in the mail.