Feb 2, 2022 Reminders as you Prepare your 2021 Taxes

As you or your tax preparer start to work on your 2021 taxes, there are a few things we wanted to remind you.

  • 1099s – TD Ameritrade is releasing 1099s in waves. The most recent wave of 1099s was released on February 11th and the final wave will be released on February 17th. There may be corrections issued after that date as well. You can find your tax documents on your advisorclient.com login or through your LRIA portal. If you elect to receive these documents via paper, please allow 5 to 7 business days to receive them after the release dates.
  • QCDs – If you did a Qualified Charitable Distribution from your IRA account in 2021, your 1099-R will not reflect that. You will need to put that in your tax software or let your CPA know. We mailed letters that provide you with information on the qualified charitable distribution you did in 2021.
  • Child Tax Credit – Families who received advanced payments of the Child Tax Credit will or have already received a form 6419 showing the amount of the credit they received in 2021. Families will be able to claim the remainder of the credit on their 2021 Tax Returns.
  • Economic Impact Payments – Individuals who received the Economic Impact Payment should have received Letter 6475 containing the amount they received. This amount will need to be used on your 2021 tax return to calculate your correct Recovery Rebate Credit.
  • Charitable Deduction for Non-Itemizers – Individuals who take the standard deduction cannot claim a deduction for their charitable contributions. However, individuals can take a deduction on their 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations and still claim the standard deduction. Under this change, individuals can claim a deduction of up to $300 ($600 for Married filing Jointly) for cash contributions made to qualifying charities during 2021. This deduction does not apply to donated property.
  • IRA & HSA Contributions – You still have time to contribute to your IRA accounts or HSA accounts for 2021. Contributions are due by the earlier of April 18, 2021 or your tax return filing date.
  • Tax Refunds – The IRS encourages taxpayers seeking a tax refund to file their tax return as soon as possible. The IRS anticipates most tax refunds being issued within 21 days of the IRS receiving a tax return if the return is filed electronically with direct deposit and there are no issues with the tax return. To avoid delays in processing, the IRS encourages people to avoid paper tax returns whenever possible.

Important Dates!

  • January 24th – IRS starts accepting and processing tax returns
  • April 18th – Deadline for filing 2021 returns or filing an extension
  • October 17th – Deadline for filing for those who requested an extension

If you have any questions, please feel free to contact us.

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Important Disclosures

Leonard Rickey Investment Advisors, PLLC (“LRIA”), is an SEC registered investment adviser located in the State of Washington. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of LRIA, please contact LRIA or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).

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